Section 80GG of income tax act, 1961 is applicable to a self employed person, businessman and even to a salaried person for the expenses that they incur towards house rent. If you are not receiving house rent allowance from your employer or your salary does not include house rent allowance then you are eligible to claim tax deduction under section 80GG for your house rent … [Read more...] about How to claim tax Deduction on rent paid – Section 80GG
HRA
Example for calculating Exemption for House Rent Allowance
Mr. X is working in a non-metro city and receives a basic salary of Rs. 14, 500, Dearness Allowance as Rs. 3000 and does not receive any commission. If he has paid Rs. 3000 as house rent while receiving house rent allowance of Rs. 4000. Let us calculate what will be his taxable house rent allowance; ParticularsCalculationAmount (Rs.)Actual house rent allowance4000*1248, … [Read more...] about Example for calculating Exemption for House Rent Allowance
House rent Allowance or HRA Exemption U/S 10 (13A)
House rent allowance granted by an employer to his employee is tax exempted to the extent provided under section 10 (13A) of income tax act 1961. Employees in India, receive house rent allowance from their employer every month as a part of their terms and conditions of employment. As per the Income Tax Act provision, HRA is partly exempted if certain terms and conditions … [Read more...] about House rent Allowance or HRA Exemption U/S 10 (13A)