Computation of House Rent Allowance (HRA) - (New) Schedule III / (Old) Section 10(13A)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee, subject tot fulfill the following condition:- • (a) Such allowance is specifically granted to meet expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee; • (b) such allowance is to such extent as may be prescribed having regard to the area or place in which such accommodation is situated and other relevan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of Salary - "salary" includes dearness allowance, if provided for under the terms of employment, but excludes all other allowances and perquisites. Furnishing of evidence of claims by employee under section 392(5)(b) for deduction of tax from income under head "Salaries" [ Rule 205 ] • The assessee shall furnish to the person responsible for making payment under section 3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for his stay. The Income Tax Act allows for deduction in respect of the HRA paid to employees. • An employee can claim exemption on his HRA. In order to claim the deduction, • the employee must actually pay rent for the house which he occupies and • the rented premises must not be owned by him. • Where the employee has not actually incurred any e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....p; "Salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites. • Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year. NOTE:- • It has to be noted that only the expenditure actually incurred on payment of....