Pallavi Goel – Page 2

House Rent Allowance?

What do mean by House Rent Allowance? House Rent Allowance also known as HRA is given by employer to its employee as a part of their salary. This type of allowance proves to be beneficial for an employee as it reduces the tax liability of employee. Employee can get deduction upto 50% of Salary or @40% of salary depending upon the states in which he resides. Employee can only get deduction if he lives or resides in a rental accommodation.

Employers give financial assistance to their employees by giving them Rent allowance. If an employee stays in his or her house then such tax deduction in regards to House Rent Allowance would not be allowed to him or her.

What if Form 16 not received from Employer?

Although, its mandatory for an employer to issue Form 16 to its employee but in any case employer does not give or issue Form 16 to its employee then how an employee can file his ITR i.e. Income Tax Return without Form 16, here below are the steps required to follow by the employee to file his Income tax Return without Form 16.

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

In furtherance to the declared policy objective of the Government to encourage digital economy and move towards a less-cash economy, a new provision namely Section 269SU was inserted in the Income-tax Act, 1961, which provides that every person having a business turnover of more than Rs 50 Crore (“specified person”) shall mandatorily provide facilities for accepting payments through prescribed electronic modes.

Extension of Due Date of Payment of TDS u/s 194M

Considering the fact that the utility for payment of tax deducted at source under section 194M of the Income-tax Act, 1961 (the Act) was deployed on 17.12.2019, the Central Board of Direct Taxes, in exercise of the powers conferred under 119 of the Act, hereby extends the due date for payment of tax deducted at source under section 194M during the month of September, 2019 and October, 2019 and the due date for furnishing the challan-cum-statement in Form 26QD for the same, from 31.10.2019 and 30.11.2019 respectively to 31.12.2019. Consequently, the due date of furnishing of the certificate of deduction of tax in Form 16D has also been extended for the tax deducted during the month of September, 2019 and October, 2019 to 15.01.2020.

Income Tax Slab Rates

Income tax slabs and tax rates for FY 2019-20 are applicable to those who earn more than Rs.2.5 lakh p.a. The rate at which individuals are taxed depends on the level of income they earn, with rates charged at nil, 5%, 20% and 30%.

In February 2019, the government announced certain changes in the structure of the tax slabs. As per the Interim Budget 2019, which came into effect from 1 April 2019, a Rs.12,500 rebate under Section 87A of the Income Tax Act, 1961, will be available to individuals who have an income of up to Rs.5 lakh. However, no changes have been made to the tax slabs and rates for the FY 2019-2020.