Table of Contents
How much is HRA in TCS?
TCSL will be deducting tax at source as per income tax guidelines. 1. House Rent Allowance (HRA) Your HRA will be *4,080/- per month. While restructuring your BoB amount to various components, it is mandatory that at least 5\% of monthly basic pay be allocated towards HRA.
Can HRA be 70 of Basic?
The following are the rules pertaining to HRA claims: HRA cannot surpass 50\% of the basic salary. HRA tax benefits can be availed together with a home loan. If an employee is residing with his or her parents, the individual can pay them rent, get a receipt of the payment and then make a claim of HRA.
Will I get HRA if I own a house?
The legal provisions in respect of HRA are contained in Section 10(13A) of the Income Tax Act and rule 2A of Income Tax Rules. These provisions do not provide that HRA benefit cannot be claimed if you own any house.
What is maximum HRA allowed?
50\%
Your allotted HRA cannot exceed more than 50\% of your basic salary. As a salaried employee, you cannot claim for the full rental amount you are paying.
What is the TCS pay structure for HRA?
As per TCS pay structure, a part of your salary falls under BOB (bucket of benefits) which includes HRA, PA etc. and TCS sets a particular amount for each category under BOB which you can change. The total amount which a person defines should be same as the amount defined by TCS.
Which percentage of salary is eligible for HRA tax exemption?
50\% of the employee salary is eligible for HRA tax exemption if he or she lives in any of the Metro cities of India. The metropolitan cities of India include Delhi, Mumbai, Calcutta and Chennai. In case the employee lives in any other city then 40\% of the salary can be HRA exempted.
What is the new HRA for central government employees?
Central Government who announced a hike in the dearness allowance (DA) has now decided to revise the house rent allowance (HRA) for the employees of Central government. The decision will come into effect from August where the employees of the Central government will receive an increased HRA as per the revised rates.
How is HRA tax calculated on change in job location?
When there is a change in job location (i.e. shift from non-metro to the metro cities or vice versa), or a change in the salary, the HRA tax are calculated on the monthly basis. Hence the deductions or the HRA tax exemptions also vary for the periods of change separately.