Raja is employed in a company at Kanpur. His monthly salary is ₹5,000. He stayed in his father's house without paying any rent up to 31st December, 2020 and thereafter he took an accommodation on monthly rent of ₹2,500.

CS Executive · Tax Laws and Practice · PYQS · June 2021
Raja is employed in a company at Kanpur. His monthly salary is ₹5,000. He stayed in his father's house without paying any rent up to 31st December, 2020 and thereafter he took an accommodation on monthly rent of ₹2,500. His employer pays him house rent allowance ₹500 per month. Calculate the amount of house rent allowance exempt from tax for the A.Y. 2021-22 of Raja. (Assuming assessee has not opted U/s 115BAC).
(A) ₹1,500
(B) ₹6,000
(C) ₹7,500
(D) ₹5,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Income Tax Act, 1961

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