House Rent Allowance News

Paying rent to your parents to claim House Rent Allowance (HRA) is legal—but only if done properly. Make sure you pay rent through bank transfers, have a formal rent agreement, and your parents declare the rental income in their tax returns.

While all eyes will be glued to the quantum of HRA under 8th Pay Commission, here's a sneak-peek into the recommendations of Central Govt Employees' Maximum HRA In X, Y, Z Cities made by 7th Pay Commission.

8th Pay Commission HRA Update: How much HRA is expected to be recommended by the 8th Pay Commission? Here are the HRA recommendations by 7th Pay Commissions, that might give a rough idea for the upcoming pay panel.

House Rent Allowance (HRA) deductions should be allowed under the New Tax Regime, expects the common man.

Contributing to these long-term investment schemes can help you save up to Rs 1.50 lakh in a financial year. 

It’s important to note that you must reside in a rented house to qualify for HRA exemption under Section 10(13A). 

There have been reports on social media and in the news about CBDT inquiries into cases where employees have inaccurately claimed HRA and rental expenses

The Income Tax Department is actively identifying individuals involved in fraudulent tax deductions. 

One can claim HRA to reduce tax outgo. Availing the NPS benefit can also reduce taxes. Food coupons can also add to tax saving.

Employees of the Central Government may be in for a big surprise in the coming months! The government may boost other allowances, such as House Rent Allowance (HRA), in the near future, said media reports.

In the revised and updated provisions, laying the conditions for drawal of House Rent Allowance, the DOE OM said a government servant shall not be entitled to HRA under the following conditions.

The category of the city in which government employees work determines their HRA. The three categories are X, Y, and Z. HRA is now paid at a rate of 27 percent of basic income to employees in the X category cities, and 18 percent to those in the Z category cities. Employees in the Z class currently receive a 9% HRA on their basic wage.

The government increases the HRA when the dearness allowance is increased to a certain limit. The HRA of central government employees is revised based on the dearness allowance. HRA would be revised from time to time with an increase in DA.

The Central government recently increased the DA of its employees around Diwali 2021. Government employees had received a 3% DA hike. The authorities are now planning to increase the DA once.

The Central government is mulling an increase in the House Rent Allowance. The demands to increase the HRA were put forward by the IRTSA and NFIR. HRA is an important aspect of the salaries of government employees.

HRA paid by employers to the employees. It is part of their salaries. Taxpayer can take benefit for the amount they pay towards accommodation every year.

The Finance Ministry has already begun its planning on increasing the HRA. The government will start crediting the increased HRA starting from January 2022. HRA is a crucial salary component paid to employees by an employer towards the accommodation cost of living in that city.

The Dearness Allowance has been increased to 28% since July 1, necessitating an increase in the HRA as well. The minimum basic compensation for central government employees, according to the Matrix of the 7th Pay Commission, is roughly Rs 18,000. The government previously increased the Dearness Allowance by 4% in January 2020, followed by another 3% rise in June of the same year.

The revised HRA structure, under the seventh CPC, came into place in July 2017.

Under the special allowance for child care Rs 1,500 which would be given to female employees with disability, per child monthly, an official release said.