Showing posts with label HRA Exemption Calculation from income tax. Show all posts
Showing posts with label HRA Exemption Calculation from income tax. Show all posts
Friday 29 January 2016
Thursday 26 November 2015
If you are a salaried employee and staying in a rented accommodation, you can claim the house rent allowance (HRA) exemption under Section 10(13A) of the Income Tax Act, 1961.
The HRA exemption is available for least of the following
amounts: a) Actual HRA amount received from the employer; b) the amount of rent
you pay for your house in excess of 10% of your basic pay; c) fifty per cent of
the basic salary, if you reside in a metro city, and 40% of the basic pay for
non-metro cities.
Download the Automatic House Rent Exemption Calculator U/s 10(13A)
For claiming the exemption, the
employee must stay in a rented house during the period for which the exemption
is being claimed and must have actually incurred the expenditure on payment of
rent. For computing the HRA exemption, salary means ‘basic salary’, dearness
allowance, if the terms of employment so provide, and commission based on a
fixed percentage of turnover achieved by the employee. While one can pay rent
to parents to claim the HRA exemption, they need to pay tax on the rent
received.
The employee will have to submit
rent receipt/rent agreement to the employer for availing the HRA exemption. The
employer needs to only obtain a rent receipt/rent agreement from the employee;
however, the employer is not required to verify the receipt for granting the
exemption to the employees.
If the amount of rent claimed is more than Rs. 1,00,000 per
year, the Permanent Account Number (PAN) of landlord has to disclosed. If the
landlord does not have a PAN, the employee is required to submit a declaration
to this effect from the landlord along with the name and address of the
landlord.
Moreover, under the Income Tax
Act, an employee can claim the HRA exemption even if he owns a house but stays
in a rented accommodation. This will be possible in cases where the employee
owns a house in some other city and cannot stay in the house because of job
location. Also, if an employee has taken a loan from a bank or a housing
finance company to buy the house, he can avail the deduction of interest under
Section 24 of the Income Tax Act as well as repayment of principal towards loan
under Section 80C of the Act, even if one is claiming the HRA exemption while
staying in a rented accommodation in another city.
The rent receipt should have a
one rupee revenue stamp with the signature of the person who has received the
rent and other details such as the rented residence address, rent paid, name of
the person who has paid the rent. While HRA is a major tool to save tax, it is
equally important to keep every documentation properly, in case demanded by the
tax authority.
Earning Curve:
* Self-employed professionals
cannot claim the HRA exemption under Section 10(13A) of the I-T Act, 1961, as
they do not earn a salary
* For claiming the HRA exemption, the employee must stay in a rented house during the period for which the exemption is being claimed
* While one can pay rent to parents to claim the HRA exemption, they need to pay tax on the rent received
* The employee will have to submit the rent receipt/rent agreement to the employer for availing the HRA exemption
* For claiming the HRA exemption, the employee must stay in a rented house during the period for which the exemption is being claimed
* While one can pay rent to parents to claim the HRA exemption, they need to pay tax on the rent received
* The employee will have to submit the rent receipt/rent agreement to the employer for availing the HRA exemption
Sunday 17 May 2015
Click here to Download the Automated HRA Exemption Calculator ( Updated)
Snapshot of Excel Based HRA Calculator :-
If you are a salaried taxpayer claiming HRA(house rent allowance) deduction, watch out. The central government has lowered the exemption limit for reporting the rent received. Salaried taxpayers claiming HRA exemption and paying a rent of over Rs 1 lakh per year have to give landlord’s PAN (permanent account number). Till now, if the total rent paid was less than Rs 15,000 a month there was no need to submit the landlord's PAN details. The new rule effectively lowers the rent limit from Rs 15,000 a month to Rs 8,333 per month for claiming HRA exemption without making any disclosures.
If you are a salaried taxpayer claiming HRA(house rent allowance) deduction, watch out. The central government has lowered the exemption limit for reporting the rent received. Salaried taxpayers claiming HRA exemption and paying a rent of over Rs 1 lakh per year have to give landlord’s PAN (permanent account number). Till now, if the total rent paid was less than Rs 15,000 a month there was no need to submit the landlord's PAN details. The new rule effectively lowers the rent limit from Rs 15,000 a month to Rs 8,333 per month for claiming HRA exemption without making any disclosures.
"Further, if annual rent paid by the
employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to
report PAN of the landlord to the employer," the Central Board of Direct Taxes said in its latest circular.
"In case the landlord does not have a PAN, a declaration to this effect
from the landlord along with the name and address of the landlord should be
filed by the employee," it said.
Though incurring actual expenditure on payment
of rent is a pre-requisite for claiming deduction under section 10(13A) of the
I-Tax Act, it has been decided as an administrative measure that salaried
employees drawing HRA up to Rs 3,000 per month will be exempted from production
of rent receipt.
The new rule is aimed at people claiming HRA
exemption for living in their own house. "It has to be noted that only the
expenditure actually incurred on payment of rent in respect of residential
accommodation occupied by the assessee subject to the limits laid down in Rule
2A, qualifies for exemption from income-tax," CBDT said in its circular.
Thus, HRA granted to an employee who is residing
in a house/flat owned by him is not exempt from income-tax. "The
disbursing authorities should satisfy themselves in this regard by insisting on
production of evidence of actual payment of rent before excluding the house
rent allowance or any portion thereof from the total income of the
employee," CBDT said.
Click here to Download the Automated HRA Exemption Calculator ( Updated)
Tuesday 29 July 2014
As per the New Central Budget the Income Tax Slab has enhanced up to Rs. 2,50,000/- below 60 years age and the Income Tax Section 80 C has also raised from 1 lakh to 1.5 Lakh. One New Income Tax Section have introduce in this Budget U/s 80C as Kissan Vikas Patra ( K.V.P.). The P.P.F Max Limit also raised from 1 lakh to 1.5 Lakh.
Most of the Tax Payers looking for the Tax Rebate as previous years Rs. 2000/- U/s 87A is also continue in this Financial Year along with the Section 80 TTA ( Savings Bank Interest up to Rs. 10,000/-)
Following is the table indicating the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget 2014-15. Tax exemption limit has been raised to Rs 2.5 lakh from Rs 2 lakh.
1) Here’s the tax slab for Individual Tax Payers:
Income Age (< 60 Years)
|
Tax Rate
|
Impact
|
Up to Rs 2,50,000
|
NIL
|
Rs. 5,000 (Savings)
|
Rs 2,50,001 to Rs 5,00,000
|
10 per cent
|
Rs. 5,000 (Savings)
|
Rs 5,00,001 to Rs 10,00,000
|
20 per cent
|
Rs. 5,000 (Savings)
|
Above 10,00,000
|
30 per cent
|
Rs. 5,000 (Savings)
|
Here’s the tax slab for Senior Citizens:
Income (For Senior Citizens)(>60 & < 80 Years)
|
Tax Rate
|
Impact
|
Up to Rs 3,00,000
|
NIL
|
Rs. 5,000 (Savings)
|
Rs 3,00,001 to Rs 5,00,000
|
10 per cent
|
Rs. 5,000 (Savings)
|
Rs 5,00,001 to Rs 10,00,000
|
20 per cent
|
Rs. 5,000 (Savings)
|
Above 10,00,000
|
30 per cent
|
Rs. 5,000 (Savings)
|
Tax Slab for an Individual (resident & above 80 years)
Income Slabs (> 80 Years)
|
Tax Rates
|
Total income up to Rs. 5 Lac
|
0% Tax
|
Total income above Rs. 5 Lac and below Rs.10 Lac
|
20% on Income exceeding Rs. 5 Lac
|
Total income more than Rs. 10 Lac
|
30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac
|
Most of the Govt and Non Govt Concerned was confused about "how to calculate the Income Tax" as the Tax Slab have not Finalised by the Finance Minister till June 2014. Now it is Clear the Tax Slab and other changes of Income Tax.
As per the New Finance Budget, the itaxsoftware.net have prepared the Automated All in One TDS on Salary for Govt & Non Govt Employees for the Financial Year 2014-15 & Assessment Year 2015-16 ( Tax Compute Sheet + Individual Salary Structure + Auto HRA Exemption Calculation + Auto Arrears Relief Calculation + Form 10E + Automated Form 16 Part B + Form 16 Part A&B for the Financial Year 2014-15 & Ass Year 2015-16)
Main Feature of these Excel Utility :-
- Automatic Prepare at a time your Tax Compute Sheet + Individual Salary Structure + Auto HRA Exemption Calculation + Auto Arrears Relief Calculation + Form 10E + Automated Form 16 Part B + Form 16 Part A&B) for the Financial Year 2014-15 & Ass Year 2015-16
- Auto Calculate House Rent Exemption Calculation U/s 10 (13A)
- Auto Calculate Arrears Relief Calculation with Form 10E from the FY 2000-01 to FY 2014-15
- In built the Salary Structure for Govt and Non-Govt Employees,for easy to calculate the Gross Salary Income
- The Salary Structure have built as per the Govt & Non-Govt Salary Pattern
- Individual Tax Compute Sheet ( For Print & Submit)
- Individual Salary Sheet ( For Print & submit)
- Automated Form 16 Part B ( As per the Latest Tax Slab & Section)
- Automated Form 16 Part A&b
- All the new amended Tax Section have in these Utility
Download from below link as Automated All in One TDS On Salary For the Financial Year 2014-15 & Ass Year 2015-16
1) Click here to Download All in One for Govt & Non Govt Employees for the Financial Year 2014-15 & Ass Year 2015-16 (Both can prepare)
2) Click here to Download All in One for Central Govt Employees for the FY 14-15
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Monday 28 July 2014
Click here to Download the Automated HRA Exemption Calculator ( Updated)
If you are a salaried taxpayer claiming HRA(house rent allowance) deduction, watch out. The central government has lowered the exemption limit for reporting the rent received. Salaried taxpayers claiming HRA exemption and paying a rent of over Rs 1 lakh per year have to give landlord’s PAN (permanent account number). Till now, if the total rent paid was less than Rs 15,000 a month there was no need to submit the landlord's PAN details. The new rule effectively lowers the rent limit from Rs 15,000 a month to Rs 8,333 per month for claiming HRA exemption without making any disclosures.
"Further, if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer," the Central Board of Direct Taxes said in its latest circular. "In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee," it said.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A) of the I-Tax Act, it has been decided as an administrative measure that salaried employees drawing HRA up to Rs 3,000 per month will be exempted from production of rent receipt.
The new rule is aimed at people claiming HRA exemption for living in their own house. "It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax," CBDT said in its circular.
Thus, HRA granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. "The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the house rent allowance or any portion thereof from the total income of the employee," CBDT said.
Click here to Download the Automated HRA Exemption Calculator ( Updated)
Source from www.itaxsoftware.net
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