House Rent Allowance (HRA) is second component which is found in each pay slip after basic salary. This is the major contributor in tax relief for the employee who reside in rented house during his/her employment.
Generally employee submits Rent receipt and rent deed to his employer to claim exemption of tax on account of HRA however CBDT vide circular :08/2013 dated 10 Oct 2013 has made mandatory that If annual rent paid by the employee to his/her land lord exceeds Rs 1,00,000 per annum, he/she will have to report PAN of the landlord to the employer. 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.
Apart from this new requirement, there are so many doubts & questions arise while calculating & claiming exemption of tax from HRA which I am trying to summaries here in “question-answer form” in my following lines:-
Read more on: https://taxguru.in/income-tax/house-rent-allowance-tax-planning-tool-salaried.html
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