What the taxpayers want
February 28, 2013 10:09
House Rent Allowance
According to Economic Times, the current provisions of the income tax act allow rent paid by the employee as an expense exempt from the income tax subject to a limit of...
50% of the annual basic salary (40% for non-metros) or
Actual HRA received from the employer or
Rent paid over and above 10% of the basic salary
(Lowest of the above three)
With soaring property prices and the rising cost of living, especially in the metros, rentals have also shot up sharply in the past few years, which the current exemption limits on rentals has failed to capture. Expectations are high that the finance minister may give due consideration to this long pending proposal of enhancing the limit of HRA exempt from tax. #discuss-budget-2013
According to Economic Times, the current provisions of the income tax act allow rent paid by the employee as an expense exempt from the income tax subject to a limit of...
50% of the annual basic salary (40% for non-metros) or
Actual HRA received from the employer or
Rent paid over and above 10% of the basic salary
(Lowest of the above three)
With soaring property prices and the rising cost of living, especially in the metros, rentals have also shot up sharply in the past few years, which the current exemption limits on rentals has failed to capture. Expectations are high that the finance minister may give due consideration to this long pending proposal of enhancing the limit of HRA exempt from tax. #discuss-budget-2013
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