MANAGEMENT

Detailed explanation-1: -HRA means house rent allowance in income tax, which is paid by an employer to the employee. It means the salary component received towards the rent payment and is allowed as a deduction from taxable salary under Section 10(13A).

Detailed explanation-2: -House rent allowance (HRA) is the amount allotted regularly by an employer for an employee to cover the house rent paid by the staff. The HRA deduction, according to Section 10 (13A) of the Income Tax Act 1961, refers to tax relief for employees living in rented accommodation.

Detailed explanation-3: -The Income Tax Act Section 10 (13A) provides for HRA exemption of tax. The deduction will be the lowest among the following: The House Rent Allowances that the employer gives. 50% of the employee’s salary is eligible for HRA tax exemption if they live in any of the Metro cities of India.

Detailed explanation-4: -25% x ₹6, 00, 000 = ₹1, 50, 000. A yearly rent of ₹1, 80, 000 (₹2, 400, 000 minus 600, 000, or 10% of income)

Detailed explanation-5: -Section 10(10CC) provides exemption only in respect of tax on non-monetary perquisites. In other words, this section does not provide exemption in respect of perquisites or tax paid on monetary perquisites. As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax.