Education and Career Forum

Sir, I am an Income Tax Officer, newly got post and shifted to Mysore from my hometown. I haven’t inform about the allowances yet. Though I know I will get rental house in Mysore through the department. But I want to know that the expenses of my house i.e., rent bill and many more is cut through my salary?

There is always a limit and upto that limit you can avail house rent per month and apart from this if you do not want to claim your house rent monthly then you can receive HRA - House Rent Allowance that will be included in your salary means there are two ways to receive house rent after becoming Income Tax Officer as per 7th Pay Commission of Central Government.

01. Receiving directly in the salary received monthly : The govt. gives you the salary monthly in which your all allowances are included means your DA - Dearness Allowance, HRA - House Rent Allowance, Local Conveyance etc. are provided by the govt. but there will be a fixed percentage of HRA of your basic salary will be provided by the govt. in your salary means your basic salary is rupees 20000 and HRA is 20% then your HRA will be 4000 rupees that will be included in your salary.

02. By claiming HRA as per rent limit : If your per month house rental eligibility is rupees 5000/- then you can claim this HRA by providing rent receipt and agreement then this HRA will not be included in your salary this will directly be claim by you per month and you will receive this in your account.

So there are both ways you can receive HRA and choice is yours means which one is profitable for you.