Income tax benefits on house rent

  • May 16, 2022
  • CA Chandan Agarwal's Office

You are authorized to tax exemption which falls under Section 10 (13A) of the Income Tax Act, as per the HRA obtained by you, subject to specific limits and conditions

Income tax laws in India provide benefits to people who do not own a house and choose to stay on rent, without receiving HRA.

Tax benefits are accessible to salaried people who obtain HRA from their employers

You are authorized to tax exemption which falls under Section 10 (13A) of the Income Tax Act, as per the HRA obtained by you, subject to specific limits and conditions.  Amit Gupta, MD, SAG Infotech said in the initial context, you are paying the rent which is a residential accommodation acquired by you. This signifies that you should have the accommodation where you are employed. Furthermore, you couldn’t be the lessor( sole owner or co-owner) of the accommodation where you are supposed to pay the rent.

Rent paid through the people who are not in receipt of HRA

Income Tax Act which falls under Section 80GG enables deduction on the lease given by an individual. Now, this would be stated through self-employed individuals along with the employees who didn’t get any HRA on behalf of their employers.

Gaurav Kapoor, Director & Co-Founder, Fincorpit Consulting Private Limited said Income Tax Act which falls under Section 80GG enables deduction on the lease given by an individual. Now, this would be stated through self-employed individuals along with the employees who didn’t get any HRA on behalf of their employers. A certain advantage has been enabled as a deduction from specific whole earnings. But, there is a restriction of 25% is deducted from the total salary, or more of the rent is basically paid under 10% of the total earnings. Additionally, most of the deduction that can b e stated yearly is 60,000 and 5,000 monthly.

Source: https://www.livemint.com/money/personal-finance/income-tax-benefits-on-house-rent-11652584008188.html

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