Salaried Assessees who are in receipt of House Rent Allowance (HRA) from an employer can claim an exemption u/s 10(13A) of the Income Tax Act-1961 read with Rule 2A of the Income Tax Rules, 1962.
The least of following can be claimed as deduction u/s 10(13A):-
Following points need to be taken in to consideration while calculating the amount of HRA admissible as exemption u/s 10(13A):
In case of other Individual assessees who are not in receipt of HRA from an employer but are living in a rented premises, option of claiming deduction u/s 80GG is available.
- In the original version of Direct Tax code released, the capital gain was proposed to be taxed at a regular rate as per applicable income slab & not at a special rate. However, dust on the DTC has not cleared completely & the final provisions will only be known after the same is replaced in the public domain.
- The application form for subscription can be accessed at www.recindia.nic.in or at www.nhai.org .