1/2/2023 0 Comments House rent receipt![]() For cities other than a metro, the entitlement is 40% of the salary. In case the individual resides in a metro city, then he/she is entitled to an HRA equal to 50% of the salary. However, there are some other factors that also affect HRA, such as the city in which the employee resides. ![]() Primarily, HRA is decided based on the salary. ![]() However, also in case the employee lives in his or her own house and does not pay any rent, he or she cannot claim HRA to save on taxes. HRA, as an exemption is provided, only if the employee is living in rented accommodations. Regulated by the provisions of Section 10(13A) of the IT Act, the house rent allowance serves to be quite beneficial to salaried employees in India.Īs per law, only salaried employees can claim HRA and self-employed individuals are exempt from doing the same. The decision of how much HRA needs to be paid to the employee is made by the employer on the basis of a number of different criteria such as the salary and the city of residence. This is basically done as it helps provide employees with tax benefits towards the payment for accommodations every year. House Rent Allowance, or commonly known as HRA, is an amount which is paid by employers to employees as a part of their salaries. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |