Stay updated with breaking news from Gaurav Mohan. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
The new rules suggest that in the urban areas where the population is more than 40 lakhs according to the 2011 census, the HRA will be 10% of the entire salary.
Income Tax: From September 1, the CBDT has notified the latest norms for employees having rent-free accommodation provided by their employers; they will now be able to save more and get a higher take-home salary
Employees drawing substantial salaries and having rent-free accommodation provided by their employers will now be able to save more and get a higher take-home salary as the income tax department has revised norms for valuing such houses. The Central Board of Direct Taxes (CBDT) has notified
The Indian Central Board of Direct Taxes (CBDT) has introduced revisions to income tax rules impacting individuals who receive rent-free accommodation from employers. CBDTs amendments to Income Tax Rules, which will become effective on 1 September, will enable employees to save more and take home higher salaries. The changes imply that employees who receive unfurnished accommodation from outside the state or central governments will experience lower valuation of their homes. The result is expected to reduce their taxable base, leading to relief in the form of take-home pay.
AKM Global Tax Partner Amit Maheshwari said employees who are drawing substantial salaries and receiving accommodation from the employer will be able to save more since their taxable base is going to be reduced now with the revised rates.