Actual rent paid minus 10% of the basic salary, or.The amount of tax deduction that can be claimed over HRA is the least of the following: How is House Rent Allowance (HRA) Calculated You should be actually paying house rent, i.e., the rent receipts should be issued in your name.You should receive HRA as a salary component.Who Can Claim Tax Deduction on HRA – Eligibility CriteriaĪ part of HRA can be claimed as a tax deduction according to Section 10(13A) of the Income Tax Act, if the following eligibility criteria are met: Let us understand the eligibility criteria to claim HRA deduction and its calculation in the following sections. HRA not only helps you manage the expenses incurred on a rented house, but also helps you save on your total tax outgo. It refers to the amount paid by an employer to his/her employee to meet the cost of living in a rented accommodation. The full form of HRA is House Rent Allowance, which often forms a key taxable component of a salary slip. Section 80GG – How to Save Tax If You Don’t Receive HRA.Important Points to Remember for Claiming HRA Deduction.How is Tax Deduction on House Rent Allowance (HRA) Calculated.
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