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Due dates for the Month of July 2021
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7th
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INCOME TAX – TDS Payment for June. |
10th
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GST – Return of authorities deducting tax at source – GSTR 7 for June. – Details of supplies effected through e-commerce operator and the amount of tax collected – GSTR 8 for June. |
11th
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GST – Details of outward supplies of taxable goods and/or services effected – GSTR 1 for June. |
13th
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GST – QuarterlyReturn GSTR 1 for April to June 2021 turnover not exceeding Rs. 1.5 Crore. – Return for Input Service Distributor – GSTR 6 for June. |
15th
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Providend Fund – PF Payment for June. ESIC – ESIC Payment for June. |
20th
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GST – Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax – GSTR 3B for June. – Return for Non-Resident foreign taxable person – GSTR 5 for June. |
22nd
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GST – GSTR 3B for June if turnover below Rs. 5 Crore for Gujrat, Madhya Pradesh, Chattisgarh, Maharashtra, Telangana. Andhra Pradesh, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Dadra & Nagar Haveli. |
24th
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GST – GSTR 3B for June if turnover below Rs. 5 Crore for the Rest of India. |
28th
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GST – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for June. |
31st
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PROF. TAX
– Monthly Return for Tax Liability of Rs. 100,000 & above. INCOME TAX
– TDS / TCS Quarterly Statement (Other than Government Deductor) for April to June
–Due date of Return of income for non audit cases for AY 2021-22. |
Software Solutions Available on:
TDS | PAYROLL | WEB PAYROLL | WEB HRMS | XBRL | FIXED ASSET |INCOME TAX| SERVICE TAX | DIGITAL SIGNATURE | ATTENDANCE MACHINE & CCTV | DATA BACKUP SOFTWARE | PDF SIGNER |
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Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063. Tel.: 022-6820 6100| Call: 09769468105 / 09867307971 Email: sales@sensysindia.com | Website: http://www.sensysindia.com Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata |
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Visit our BLOG for the latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT, etc. Click here to visit Sensys BLOG
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Due dates for the Month of June 2021
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7th
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INCOME TAX – TDS Payment for May. |
10th
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GST – Return of authorities deducting tax at source – GSTR 7 for May. – Details of supplies effected through e-commerce operator and the amount of tax collected – GSTR 8 for May. |
11th
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GST – Details of outward supplies of taxable goods and/or services effected – GSTR 1 for May. |
13th
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GST – Return for Input Service Distributor – GSTR 6 for May. |
15th
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Providend Fund – PF Payment for May. ESIC – ESIC Payment for May. |
20th
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GST – Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax – GSTR 3B for May. – Return for Non-Resident foreign taxable person – GSTR 5 for May. |
22nd
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GST – GSTR 3B for May if turnover below Rs. 5 Crore for Gujrat, Madhya Pradesh, Chattisgarh, Maharashtra, Telangana. Andhra Pradesh, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Dadra & Nagar Haveli. |
24th
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GST – GSTR 3B for May if turnover below Rs. 5 Crore for the Rest of India. |
28th
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GST – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for May. |
30th
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PROF. TAX
– Monthly Return for Tax Liability of Rs. 100,000 & above. INCOME TAX – TDS Quarterly Statements (Other than Government Deductor) for January to March |
Software Solutions Available on:
TDS | PAYROLL | WEB PAYROLL | WEB HRMS | XBRL | FIXED ASSET |INCOME TAX| SERVICE TAX | DIGITAL SIGNATURE | ATTENDANCE MACHINE & CCTV | DATA BACKUP SOFTWARE | PDF SIGNER |
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Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063. Tel.: 022-6820 6100| Call: 09769468105 / 09867307971 Email: sales@sensysindia.com | Website: http://www.sensysindia.com Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata |
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Visit our BLOG for the latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT, etc. Click here to visit Sensys BLOG
|
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Due dates for the Month of May 2021
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7th
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INCOME TAX – TDS Payment for April. |
10th
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GST – Return of authorities deducting tax at source – GSTR 7 for April. – Details of supplies effected through e-commerce operator and the amount of tax collected – GSTR 8 for April. |
11th
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GST – Details of outward supplies of taxable goods and/or services effected – GSTR 1 for April. |
13th
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GST – Return for Input Service Distributor – GSTR 6 for April. |
15th
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Providend Fund – PF Payment for April. ESIC – ESIC Payment for April. |
20th
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GST – Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax – GSTR 3B for April. – Return for Non-Resident foreign taxable person – GSTR 5 for April. |
22nd
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GST – GSTR 3B for April if turnover below Rs. 5 Crore for Gujrat, Madhya Pradesh, Chattisgarh, Maharashtra, Telangana. Andhra Pradesh, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Dadra & Nagar Haveli. |
24th
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GST – GSTR 3B for April if turnover below Rs. 5 Crore for the Rest of India. |
28th
|
GST – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for April. |
30th
|
LLP – Form 11 – Annual Return for Previous Financial Year. |
31st
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PROF. TAX
– Monthly Return for Tax Liability of Rs. 100,000 & above. |
Software Solutions Available on:
TDS | PAYROLL | WEB PAYROLL | WEB HRMS | XBRL | FIXED ASSET |INCOME TAX| SERVICE TAX | DIGITAL SIGNATURE | ATTENDANCE MACHINE & CCTV | DATA BACKUP SOFTWARE | PDF SIGNER |
|
Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063. Tel.: 022-6820 6100| Call: 09769468105 / 09867307971 Email: sales@sensysindia.com | Website: http://www.sensysindia.com Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata |
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Visit our BLOG for the latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT, etc. Click here to visit Sensys BLOG
|
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Due dates for the Month of April 2021
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10th
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GST – Return for authorities deducting tax at source – GSTR 7 for February – Details of supplies effected through e-commerce operator and the amount of tax collected – GSTR 8 for March. |
11th
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GST – Details of outward supplies of taxable goods and/or services effected – GSTR 1 for March. |
13th
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GST – Return for Input Service Distributor – GSTR 6 for March – Quarterly Return GSTR 1 for January to March 2021 turnover not exceeding Rs. 1.5 crore |
15th
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Providend Fund – PF Payment for March ESIC – ESIC Payment for March |
18th
|
GST – Return for composition taxable person- GSTR 4 for January to March |
20th
|
GST – Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax – GSTR 3B for March – Return for Non-Resident foreign taxable person – GSTR 5 for March |
22nd
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GST – GSTR 3B for February if turnover below Rs. 5 Crore for Gujrat, Madhya Pradesh, Chattisgarh, Maharashtra, Telangana. Andhra Pradesh, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Dadra & Nagar Haveli |
24th
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GST – GSTR 3B for March if turnover below Rs. 5 Crore for the Rest of India. |
28th
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GST – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for March. |
30th
|
Income Tax
– TDS deduction for the month of March Profession Tax |
Software Solutions Available on:
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|
Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063. Tel.: 022-6820 6100| Call: 09769468105 / 09867307971 Email: sales@sensysindia.com | Website: http://www.sensysindia.com Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata |
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Visit our BLOG for the latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT, etc. Click here to visit Sensys BLOG
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The draft of the Code on Wages Karnataka Rules, 2021 which The government of Karnataka proposes to make in the exercise of the powers conferred by section 67 of the Code on Wages, 2019 (Central Act No. 29 of 2019) is hereby published as required by sub-section (1) of said section, for the information of all the persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after thirty days from the date of its publication in the Official Gazette.
Facts in essence:
For the assessment year under consideration, the assessee filed his return of income on 27th September 2011, declaring a total income of Rs. 75,73,399 wherein an amount of Rs. 18,455, under the head “Income From House Property” is included and has shown rent received of Rs. 30,000.
Details of the property let out and rent received as furnished by the assessee: Vide letter dated 12th December 2013, the assessee furnished the details and submitted that he along with his father and brother is a co-owner of the flat. It was submitted that a part of the flat was given on rent to a partnership firm, wherein, his father is a partner. Thus, he and his brother both receive the rent of Rs 30,000/- each.
Also, the annual value of the said property has been fixed by the Municipal Authority at Rs. 79,380. Thus, ALV determined by the Municipal Authority could be adopted for determining the income.
Analysis of facts:
When the assessee had furnished a valuation from the Municipal Authorities determining the ALV at Rs. 79,380, the same could not have been rejected without valid and cogent reasoning. Thus, in the absence of any inquiry by the department as to actual market rent of the assessee property, rejecting the Municipal valuation and referring ALV of some other property (which are commercial property let out to the bank and other commercial establishments) or some other estimated rent is un-justice to the assessee.
What is annual letting value:
Reasonable expected rent is deemed to be the sum for which the property might reasonably be expected to be let out from year to year for which the following factors are taken into consideration:
✓ Location of the property
✓ Annual rentable value of the property fixed by municipalities
✓ Rents of the properties in the neighborhood
✓ The rent which the property is likely to fetch having regard to demand and supply
✓ Cost of construction of the property
✓ Nature and history of the property
The fair rent of the property can be determined on the basis of a rent fetched by a similar property in the same or similar locality. Fair rent is based on some scientific basis and is not the estimated rent or an arbitrary rental value. Also, for collecting municipal taxes, local authorities make a periodical survey of all buildings in their locality in their jurisdiction. Such valuation may be taken as a piece of strong evidence representing the earning capacity of a building. However, it can’t be considered to be conclusive evidence in all cases.
Moreover, in metro cities, municipal authorities determine net rateable value after deducting 10 percent of the gross rateable value, on account of repairs and an allowance for service taxes. The net municipal valuation thus arrived at, requires a fair adjustment for determining reasonable expected rent for income tax purposes. However, such valuation can’t be rejected without valid and cogent reasoning.
Conclusion:
When the assessee had furnished a valuation from the Municipal Authorities determining the ALV at Rs. 79,380, the same could not have been rejected without valid and cogent reasoning. In view of the
aforesaid, AO has to accept the assessee’s claim that the ALV of the property has to be determined at Rs. 79,380, as per the valuation of Municipal Authorities and thereafter assessee’s share shall be determined for addition under the head income from house property.
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Due dates for the Month of March 2021
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7th
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Income Tax – TDS Payment for February |
10th
|
GST – Return for authorities deducting tax at source – GSTR 7 for February – Details of supplies effected through e-commerce operator and the amount of tax collected – GSTR 8 for February |
11th
|
GST – Details of outward supplies of taxable goods and/or services effected – GSTR 1 for February |
13th
|
GST – Return for Input Service Distributor – GSTR 6 for February |
15th
|
Providend Fund – PF Payment for February ESIC – ESIC Payment for February Income Tax – Advance Income Tax – Final Installment for All Assessees |
20th
|
GST – Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax – GSTR 3B for February – Return for Non-Resident foreign taxable person – GSTR 5 for February |
22nd
|
GST – GSTR 3B for February if turnover below Rs. 5 Crore for Gujrat, Madhya Pradesh, Chattisgarh, Maharashtra, Telangana. Andhra Pradesh, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Dadra & Nagar Haveli |
24th
|
GST – GSTR 3B for February if turnover below Rs. 5 Crore for the Rest of India. |
28th
|
GST – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for February. |
31st
|
Income Tax
– TDS / TCS Quarterly Statement (Other than Government Deductor) for October to December 2020 Profession Tax |
Software Solutions Available on:
TDS | PAYROLL | WEB PAYROLL | WEB HRMS | XBRL | FIXED ASSET |INCOME TAX| SERVICE TAX | DIGITAL SIGNATURE | ATTENDANCE MACHINE & CCTV | DATA BACKUP SOFTWARE | PDF SIGNER |
|
Sensys Technologies Pvt. Ltd.
HO: 904, 905 & 906, Corporate Annexe, Sonawala Road, Goregaon East, Mumbai- 400 063. Tel.: 022-6820 6100| Call: 09769468105 / 09867307971 Email: sales@sensysindia.com | Website: http://www.sensysindia.com Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata |
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Visit our BLOG for the latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT, etc. Click here to visit Sensys BLOG
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House Rent Allowance (HRA) Vs. Rent Free Accommodations (RFA)
House Rent Allowance (H.R.A.) results in tax savings because accounting under Income tax act is direct exemption based. However, accounting of Rent Free accommodation is valuation based taxation and added to total income of employee presumptive basis.
The principles of valuations are explained below:-
House Rental allowance |
Rent Free accommodation |
Components of salary:
Exemption based:- HRA is taxable if received more than least of the following :
Examples:-
Conclusion:- Taxability under this is dependent upon the following factors:
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Components of salary:
Extent of taxation:- No separate exemption under this, Least of the following is taxable (In case accommodation is hired by the employer) :
Conclusion:- Taxability under this is dependent upon the following factors:
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Now, above factors may help a good tax planning tool for the employees and CTC planning for employer. In the following examples we shall explain this. Total outflow of the employer assumed to be Rs. 100/-
House Rental Allowances |
Rent Free Accommodation |
Basis salary = Rs. 50/- HRA = Rs. 25/- Other allowances = Rs 25/-Computation of Taxable HRA HRA received = Rs. 25/- Deduction will be least of the following:
Rs. 25 – Rs. 5 = Rs. 20/- The taxable HRA comes out to be Rs. 5/- Income under the head salary = Rs. 80/- |
Basis salary = Rs. 50/- RFA(Hire charges paid) = Rs. 25/- Other allowances = Rs. 25/-Computation of Taxable RFA No tangible receipts to employee. Least of the following will be taxable:
OR
The taxable RFA comes out to be Rs. 11.25/- Income under the head salary = Rs. 86.25/- |
Analysis and fund planning:-
Total CTC of the employee (or outflow of employer) in both the cases will be Rs. 100/-
House Rental Allowances |
Rent Free accommodation |
Income taxable under the head salary :Rs. 80/-.
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Income taxable under the head salary : Rs. 86.25/-.
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By: Sensys Technologies
For more tools on tax planning and CTC planning please refer to our blogs on http://www.sensystechnologies.com/blog
For any further information or query you can be reached to experts of our panel at contact@sensysindia.com
HOUSE RENT ALLOWANCE – How to compute exemption
What is House Rent Allowance?
– Employees generally receive a house rent allowance (HRA) from their employers.
– This is a part of the salary package, in accordance with the terms and conditions of employment.
– HRA is given to meet the cost of a rented house taken by the employee for his stay.
– Now a days HRA is given to all employees irrespective of actual rent factor. In most of the cases it is 40% to 50% of basic pay of or 28% (approx.) of CTC and so is the major tax planning factor.
– The exemption on HRA is covered under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules.
How is HRA accounted for in the case of a salaried individual and a self-employed professional?
Basis | Salaried individual | Self-employed professional |
Tax accounting | Under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules. | Under section 80GG, which resembles section to 10(13A) but is subject to certain conditions. |
What is the formula for calculating HRA exemption?
Minimum of the following three options:
- 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
This minimum of above is allowed as income tax exemption on house rent allowance.
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. All the components shall be taken on due basis. Caution: salary is taxable on due or receipt whichever is earlier (sec 15) but for calculating HRA exemption all components shall be taken only on due basis.
Caution: The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.
Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.
- Basic Salary – Rs. (5000*12) – Rs. 60,000/-
- Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
- House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
- Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
Calculation
The minimum of the following amount shall be exempt
- Actual HRA received (2000*12) – Rs. 24000/-
- Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
- 40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
House Rent Allowance
Income tax department offers HRA tax exemption for those individual tax payer who stays in a rented house. Section 10(13A) of the income tax act allows the exemption of HRA. Employee can claim for HRA exemption if he or she lives in a rented house. To be eligible for claim of HRA deduction, an employee must be paying for the rent to his landlord and maintain the receipts which state that he has been paying for his rental expenditure. If an employee stays in his own house there is no tax deduction on HRA.
Following points to be considered for Calculation of HRA exemption.
1. Amount equal to 50 percent of Salary where residential house is situated in Mumbai, Delhi, Kolkatta or Chennai or Amount equal to 40 percent of Salary for other places.
2. House Rent Allowance received by the Employee
3. Excess of Rent paid over 10% of Salary.
Salary includes Basic Salary + Dearness Allowance + Commission on fixed percentage of turnover achieved by an Employee.
Minimum of point no. 1, 2 & 3 is exempted.
For Example,
Basic Salary (Rs 5000/- per month —— Rs. 60, 000/- yearly),
Dearness Allowance (Rs. 1000/- per month —- Rs. 12, 000/- yearly).
Actual Rent Paid (Rs 2000/- per month —— Rs 24000/- yearly),
HRA received by Employee (Rs. 2000/- per month —- Rs. 24, 000/- yearly)
City: Mumbai
1. 50% of Salary (Basic + DA) = Rs. 36,000/-
2. Rent Received = Rs. 24,000/-
3. Rent paid in excess of 10% of Salary (Basic + DA) = Rs. 16, 800/-,
Hence, Rs. 16800/- would be exempt and the rest Rs 7,200/- would be included in gross salary for tax calculation.
Documents needed to claim HRA includes rent receipts, rental agreement, PAN details of the landlord.