RFA AND HRA

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Priyanka Kataria (Delhi) (Querist)
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01 February 2011 WHAT IS ACTUAL MEANING OF RFA AND HRA........PLS DONT TELL ME THE INCOME TAX RULES I JS WANT TO KNOW THE ACTUAL MEANING OF HRA AND RFA

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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05 February 2011 Hi,

HRA - House Rent Allowance means an allowance given to the employee to help or reduce the burden of paying rent, it will be give as cash remuneration.

However

RFA-n Rent Free Accomadation means an accomadation given by the employer for which there will be no requirement of payment of Rent by the Employee.
(The Employer may own d accomodation or the Employer may take the accomation & pay the rent to the landlord and give it the employee for Free)

In simple terms for

HRA - Money will be given to the Employee for paying up his rent for Accomadation

RFA - Accomodation itself will be free i.e he will be getting the benefit in
KIND.

HOPE I HAVE RESOLVED UR ISSUE.

FOR FURTHER CLARIFICATION PLEASE JOIN MY COMMUNITY "Lo Aca"

Thankyou,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),ITF Hons, SAPM Hons

Priyanka Kataria (Delhi)

Priyanka Kataria (Delhi) (Querist)
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06 February 2011 thanku u so much sir...now i can differentiated both of them in verbally.... thanks

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