Hra exemption on company provided accomodation.
This query is : Resolved
07 June 2019
I AM EMPLOYEE IN TATA MOTORS INDIA PLANT. I GET HRA WORT RS. 10,000 PER MONTH FROM MY EMPLOYER AND MY EMPLOYER DEDUCTS RS. 2500/= FROM MY SALARY EVERY MONTH AS I LIVE IN COMPANY PROVIDED HOUSE. CAN I CLAIM INCOME TAX EXEMPTION ON THAT AMOUNT WHICH I PAY EVERY MONTH TO MY EMPLOYER? THANKS.
08 June 2019
Dear Ravi,
If company is charging fair rent for the accommodation provided to you then you can claim your HRA exemption, HRA exemption is based on specific condition which is as under:-
a) HRA received (as in your case it is Rs. 120,000 for a year)
b) Rent paid less 10% of basic
c) 40 % of basic or (50% of Basic in residing in metro city i,e Delhi, Mumbai, Chennai, Kolkata)
Minimum of the above three will be exempt.
If rent charged by the company is not fair or company provided concessional rent accommodation to the employees then entire HRA received will be fully taxable and valuation of concessional rent w.r.t. perquisite will require to be made.
If company is charging fair rent for the accommodation provided to you then you can claim your HRA exemption, HRA exemption is based on specific condition which is as under:-
a) HRA received (as in your case it is Rs. 120,000 for a year)
b) Rent paid less 10% of basic
c) 40 % of basic or (50% of Basic in residing in metro city i,e Delhi, Mumbai, Chennai, Kolkata)
Minimum of the above three will be exempt.
If rent charged by the company is not fair or company provided concessional rent accommodation to the employees then entire HRA received will be fully taxable and valuation of concessional rent w.r.t. perquisite will require to be made.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Regarding Applicability of Tax Audit u/s 44AB
- Putting a heading on received mail
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Consolidated financials
- TDS on TRUST
- Withdrawal in cash from partners capital account by partner
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
