Did you ever think, that paying
rent can lead to some tax exemptions, if not then you must know about HRA Exemption. Here are a couple of things that you need to know about HRA
Exemption in India.
How is HRA Exemption calculated?
The deduction available is the least of the following amounts: -
a. Actual HRA received
b. 50% of (basic salary + DA) for
those who live in metro cities
c. 40% of (basic salary + DA) for
those who live in non-metro cities
d. Actual rent paid less 10% of
basic salary + DA
Can I claim HRA Exemption on Home Loan?
Yes, a taxpayer can claim house
rent allowance, as it has no bearing towards your home loan interest deduction.
Both can be claimed. Try out our free HRA calculator and
calculate your HRA exemption accurately, in just a couple of seconds. This
calculator shows you how much of your HRA is taxable and how much is exempt
from tax.
What to do when you employer does not give you HRA Exemption?
If you paying rent for any
furnished or unfurnished residential accommodation occupied by you, but do not
receive HRA from your employer, you can still claim the deduction and you can
do this under Section 80GG.
Conditions that must be fulfil in
order to claim HRA are as follows:
a. You are self-employed or
salaried
b. You have not received HRA at
any time during the year for which you are claiming 80GG
c. You or your spouse or your
minor child or HUF of which you are a member, do not own any residential
accommodation at the place where you currently reside, perform duties of
office, or employment or carry out business or profession.
In case, you own a residential
property at any place other than the place mentioned above, then you should not
claim the benefit of that property as self-occupied. That other property would
be deemed to be let out in order to claim the deduction under section 80GG.
Moreover, you can use our Rent
Receipt Generator, in order to Generate Rent Receipt.
Comments
Post a Comment