Can anyone explain about the perqusites mainly HRA and Conveyance allowance and how we can take exemptions in Tax in f.y 2009-10 ?
please help
1 Replies
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 13 November 2009
1.Conveyance allowance is granted to meet the expenditure on conveyance in performance of duties of an office.
Maximum amount exempt from tax is to the extent the allowance is used for the performance of duties of an office.
EXPENDITURE FOR COVERING JOURNEY BETWEEN OFFICE AND RESIDENCE IS NOT TREATED AS EXPENDITURE IN PERFORMANCE OF OFFICIAL DUTY.IT IS CALLED TRANSPORT ALLOWANCE AND RS. 800 PER MONTH IS EXEMPT FROM TAX.
2.HRA
The least of the following is exempt from TAX:
- Actual house rent allowance received from your employer
- Actual house rent paid by you minus 10% of your basic salary
- 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
