House Rent Alloun (HRA) helps a lot in saving tax. If your salary includes the component of HRA, then you can claim the execution under section 10 (13A) of the Income Tax Act. It looks very easy when reading. But this isn’t so easy. The Income Tax Department can reject your claim on a small mistake in claiming HRA. It is important to keep this in mind if you use the old reizards of income tax only then you can clum HRA. HRA is not allowed to claim HRA in the new regimen.
Means of house rent allowance
Generally in salary Hra Is involved. This is the money that the company gives you for the payment of home rent. Therefore, exhalation is available on it, because it is believed that you have used this money for home rent payment. But, there are certain conditions for claim to claim HRA. First, it is necessary to have a salary taxpayer for this. Second, it is necessary to stay in your rented house. Third, it is necessary to pay your rent. Fourth, you must have proof to pay the rent. The Income Tax Department asks for a rent agreement and rent receipt from you.
How much HRA can be claimed
The question is, how much can a taxpayer be claimed? There is a formula for this. First, how much HRA do you get from the employer. Second, if you live in the metro city, then 50 % of the salary (Basic Plus DA) and 40 % of Salary (Basic Plus DA). Third, the actual fare paid 10 % of minus salary (Basic Plus DA). Out of these three, whose amount will be the lowest, you can claim HRA on the amount.
Claims can be rejected by these miscreants
If you give fake receipts for rent then your HRA claim may be rejected. Even if you give a receipt of rent of more amount, your claim will be rejected. Income tax rules are allowed to claim HRA on rent to the parents. However, you should have proof of this rent payment. This means that if you pay the fare of the house to the father, then this income should be included in the father’s income tax return.
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Evidence of rent payment and stay in a rented house
It is necessary to have a rent agreement to claim HRA. After that you should have a receipt of rent payment during the concerned financial year. Finally, you should also have a land of landlord. Salarid taxpayers are required to send information about these things to the Finance Department of the Employer every year for the first or second week of January. If you do not send this evidence to the Finance Department, then your HRA claim may be rejected.