Legal experts say they are encountering an increasing number of cases where individuals use someone else’s PAN to claim fake HRA. Written by Rajeev Kumar October 16, 2023 12:07 IST
The exemption on your HRA benefit is the minimum of: The actual HRA received, rent paid annually reduced by 10% of salary, 50% of your basic salary (if you live in a metro city), and. 40% of your basic salary (if you live in a non-metro city). Remember, that the least amount from the above four options is taken into consideration for tax exemption. HRA is one of the biggest tax saving options because it is not wholly taxable. A part of HRA gets exempted under Section 10 (13A) of the Income-tax Act, subjected to certain conditions. As it becomes part of the salary, the least of the three amounts is tax-exempt –. · Actual HRA provided by the employer. · Actual rent paid less 10% of your Part of Salary: HRA exemption is a part of your taxable salary, so you need to declare your HRA as income while filing your income tax return. Furnish Rent Receipts: To claim the exemption, you need to provide rent receipts or a rental agreement as evidence of rent payment to your employer. Basic salary. DA forming part of salary. Commission (as % of turnover achieved by the employee) HRA Received. Rent Paid. Tick if residing in metro city. (Tick if Yes) Exempted House Rent Allowance. Taxable House Rent Allowance.HRA Calculation in Income Tax 2022 | House Rent Allowance Calculation in Income Taxhra calculation income tax in hindihra calculation income tax 2022hra calcThe rent that is paid to the parents is taxable for them under the head ‘income from house property.’ They can claim property taxes paid by them and also claim a 30% standard deduction from this rental income. If the parents are in a lower tax bracket than the salaried individual claiming the HRA exemption, the family can save tax as a whole. A taxpayer must fulfil the following conditions to claim a deduction under Section 80GG: You have not received HRA from an employer at any time during the year for which you are claiming 80GG. The HRA component should not form part of your salary to claim 80GG. You, your spouse, minor child or HUF of which you are a member, do not own any 7MqCdLY.