What is House Rent Allowance?

House Rent Allowance (HRA) is an amount which is paid by employers to employees as a part of their salaries. It is a kind of exemption, which can be provided only if the employee is living in rented accommodation. In case the employee lives in his/her house, they cannot claim HRA. It is only for employees living in rented accommodation.

How is HRA computed?

HRA depends on the salary of an employee.

For the last many years there has been a tremendous rise in foreign trips by Indian residents. Despite spending huge amounts on such trips, people do not comply with the filing of returns of income. This brings the government to take some corrective steps to reach out for those people who are actually avoiding the mandatory income tax compliances. In this year’s budget, the significant amendment is brought in the Income-Tax Act for Foreign Tour Operators. This amendment is coming in the form of a collection of TCS by these operators arranging foreign tours for their clients.

This year, taxpayers are very much confused while making their investment declarations to employers for tax deduction at source (TDS). This confusion is nothing but the selection of old regular income tax regime or the newly introduced regime in this year’s budget. Now it is becoming a headache for taxpayers whether to stick with the old regime by availing tax deductions or forego certain deductions and claim lower tax rates under new optional income tax regime.

Tax planning is not an act of evading the taxes, but to minimize them by availing the benefit of the allowances, deductions, rebates, concessions, and exclusions available well within the statutory framework. In reality, it is not as easy as it looks. A CA is well versed with all the laws and can assist with the best suitable options to provide the maximum possible tax benefit scenario, along with establishing your financial goals.

Worried about ITR? Then this write-up is for you! Before hiring a tax consultant you must be aware of important ITR facts. Read on to know more about ITR filing.

The deadline to file an ITR is approaching. If you have never filed an ITR before, you may find the task to be a daunting one.

You can reduce all the stress by getting a tax consultant on board. It is also important that you are aware of certain facts about filing ITR. Here are some important things that you must keep in mind, especially if you are filing an ITR for the first time: