There is great news for the employees. On one side where they are being provided the benefit of allowance. At the same time, you can also get tax exemption through the claim of allowance. For this, important changes have been made in the rule, which is very important for them to know.
Employees HRA Claim There is big news for the employees. Various types of allowances are provided to the employees. HRA is one of those allowances. House rent allowance is made available to every job profession. Under the tax regime, the rates of tax exemption in this allowance have been increased. Along with this, some important amendments have also been made in the rule. Which is very important for the employees to know.
Actually tax exemption has been increased. Along with this, many rules have also increased. Which also includes House Rent Allowance. House rent allowance can also be used for tax saving. For this it is necessary to know some things. Employees are given the benefit of HRA by the company. Under Section 10(13A) of the Income Tax Act for this allowance, people drawing salary are exempted from hiring house rent.
This benefit will not be available under the new tax regime
However, its benefits are available only if opted under the old tax regime. Employees will not get its benefit under the new tax regime. For exemption of house rent allowance, it is mandatory to opt for the old tax regime. Under the rules, some rules have been fixed for taking the benefit of tax from Planet Bata. This benefit is available only if you are living in a rented house.
This is the rule
Employees do not get the benefit of having their own house. 50% of the basic pay or the amount of rent paid after 10% of the basic pay or 50% of the basic pay or 40% of the basic pay KDA, whichever is less, will be subject to tax. Exemptions are given within the range.
Employees can avail tax exemption
House rent allowance is affected in a number of ways. Apart from the basic salary, the house rent allowance received from the company, the amount of actual rent paid as well as the certificate of residence in metro and non-metro have been considered valuable by it. On the other hand, employees can take advantage of tax exemption under house rent allowance.
