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
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
CAclubindia
