Ii. The individual lives on rent, but is not paid by salary. An individual must deposit the rental income and the rental contract in order to benefit from the home rent allowance. If the rent he paid exceeds $1,00,000 per year, he must file the owner`s pancard data, along with the rental income and lease. Beyond the normal arithmetic of tax plates, gutters and supplements, the employee can benefit from the HRA exemption and satisfy his quest for a higher home-taking salary. Let`s take a look at the dynamics of the HRA element in each taxpayer`s salary and how to obtain tax exemptions. Yes, both can be claimed. The home rent allowance has no influence on the deduction of interest on the home loan. No, the HRA is only paid for rent. Other royalties are therefore not included. The Income Tax Act provides these workers with tax benefits under Section 80GG, up to a maximum of EUR 5,000 per month. To obtain and obtain this exemption, the following criteria must be met: he earns a basic monthly salary of 30,000,500 medical dollars, 2,500 dollars and HRA of 15,000 dollars.
He pays 12,000 euros to rent accommodation in a metro town. In the case of renting with other friends such as a roommate, I recommend having a lease to clearly show the amount of rent shared between tenants. A guide to saving HRA exemptions and taxes Even if a worker stays in a rented apartment for part of the year, they have the right to apply for an HRA exemption for the period for which they paid the rent. For the remaining portion of the HRA, the tax is levied at the applicable rate. No rent required for rents of less than 3 thousand per month. Only the HRA return is sufficient to request a tax exemption. You must file supporting documents if the total rent you indicate for the whole year (12 months) is higher than INR 1 lakh. All requests for exemptions guaranteed by the required documents must be submitted to the employer within a specified period of time.
If this is not the case, the employer is not in a position to grant the exemption. In such cases, the employee may collect these rental income and apply for the exemption for HRA at the time of filing of income tax returns. The exempt amount will be reimbursed by the IT authorities. If you pay rent for a home you live in but do not receive a HRA from your employer, you can continue to claim the 80GG deduction.