1. #1
    Unregistered

    What is HRA and what are its benefits? Is it compulsory to pay tax on this HRA?

    I am selected in NTPC through GATE exam this year. In the proposal of job offer,there is a term called HRA that NTPC has promised to give. What is the meaning of HRA? I donít have any idea about this. What are the benefits I will receive through HRA? Is it compulsory to pay tax on this HRA?

  2. #2
    Barnali Array
    Join Date
    May 2013
    Posts
    206

    Re: What is HRA and what are its benefits? Is it compulsory to pay tax on this HRA?

    Hi,

    HRA is nothing but House Rent Allowance..this is a kind of allowance given to the employee in their pay structure....

    HRA is given to employees so that they can claim house rent exemption in income tax....
    For better clarity.... If you stayed in a rented house then as per Income Tax Act you will get the benefit of rent paid...there are calculations as per income tax Act and the exemption will depends on that working...

  3. #3
    srinivasa Array
    Join Date
    Feb 2013
    Posts
    539

    Re: What is HRA and what are its benefits? Is it compulsory to pay tax on this HRA?

    HRA means housing rental allowance this is tax free your given tax exemption on HRA.. this an integral part of salary structure ... HRA deals with house given to an employee when there is relocation, i mean this HRA fund is given to employee on cutting the house rent which is sheds it out from his pocket.. some times when office provides with house accommodation then you will not be given HRA allowance but when your not accommodated by company then your given HRA benefit... all the best

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