can somebody elaborate of rule 2A with respect to HRA exemption and production of rent receipts.
examples would help
Rgds
Rajashree
11 Replies
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 23 January 2008
Let us say the salary within the meaning assigned to it in clause (h) of rule 2 of Part A of Fourth schedule is Rs 50000. and the accommodation is in Mumbai.
A) HRA given is 30000.
B)The Rent actually paid for accommodation is Rs 40000. (Therefore rent paid in excess of one tenth of salary is Rs 35000)
C)One half of salary is Rs 25000
The least of the above is Rs 25000 and that is what will be excluded from his total salary income of Rs 80000. (50000+30000).
H S Rajashree
(MBA in Finance)
(221 Points)
Replied 23 January 2008
Thanks
Is it true that an employee need not submit rent receipts if his rent is below 3000? If so, is there any specific mention of it anywhere in the rules/Act/reckoner?
Rgds
Rajashree
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 23 January 2008
All that is required is the onus is on the part of the assessee to prove that he has indeed paid the rent with reference to which he claims exemption. The proof can be any of these- Paid out cheque through a Bank account, receipt from house owner, lease deed, letter from owneretc..
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 11 March 2008
Dear,This is in which city,what is basic salary
(Guest)
Hi,
I have a doubt in my mind related to HRA exemption in case of company leased accommodation. I work with a IT company and my salary structure is as follows -
basic - 21000, HRA - nill, LTA- 1250, total allowance - 20700, -- a total of 42950 per month.
Now since I live in a company leased house in Delhi, no HRAis there. But if I will have house on personal lease then i will have hra - 12600 and total allowance will be - 18000 and total per month will be - 52850.
Now my question is how my tax calculations will work in both cases--1) if i live in company leased house and 2) if i live in personal leased house . Supposing the rent amount of 10000 in both cases.
which one is beneficial and by how much amount from tax saving perspective. A detailed tax calculation will help in understanding in both the cases. Assume for savings done for 1 lakh.
Kindly reply... this will really be a great help. Kindly let me know if further details required.
Regards,
Rohit
Prabhash Chandra Jha
(TAX CONSULTANT)
(48 Points)
Replied 17 August 2008
dear ramana
this is totally depended on the company h r to what is the policy of company for payament of salary. if you want what is exemption under i t act then please quote full problem
Recent Topics
- Taxability of income in USA of resident oci holder
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
Related Threads
CAclubindia
