Perquisites

This query is : Resolved

Girish (Querist)
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04 January 2010 Due to new amendments in the perquisites, please tell whether the HRA exemption on producing Rent receipt and Transport Allowance Rs 800/- is still exempted or we have to charge for tax
Regards

GIrish

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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04 January 2010 Hiii....

Both HRA & Transport Allowance are not perquisites and Still will be computed according to previous rules.

Therefore, HRA will be computed under rule 10(13A)for exemption purpose and Transport Allowance is Still exempt Rs. 800pm.

HRA will be exempt LEAST of the following:
(i) HRA received
(ii) Rent Paid - 10% of Salary
(iii) 50% or 40% of Salary

NOTES:
a) Here Salary includes Basic Salary+DA(if)+Commission on turnover
b)50% if Residence is in Metro City Otherwise 40%

Regards!!!
Dinesh S. Adhikari

shirish nagchandi

shirish nagchandi (Expert)
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05 January 2010 there is no change in HRA Exemption, the exemption will continue as provided in rule 10 (13A), regarding transport llowance the exemption limit of Rs. 800.00 p.m. will continue. it is mention that very soon the limit is being raised to Rs.3200 p.m., an order from ministry of finance is epected.

CA Deepak S

CA Deepak S (Expert)
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05 January 2010 Agree with the expert

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 January 2010
dear sir,

there HRA will be computed under rule 10(13A)for exemption purpose and Transport Allowance is Still exempt Rs. 800pm and no change will be on exemption.

RAMESH

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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05 January 2010 Yes, HRA is exempted subject to conditions laid down in sec.10 (13A) and transport allowance is exempt up to Rs. 800/- p.m.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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05 January 2010 Yes, HRA is exempted subject to conditions laid down in sec.10 (13A) and transport allowance is exempt up to Rs. 800/- p.m.