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How to take tax exemption
09-Jun-2023 (In Labour & Service Law)
WE 5 FRIENDS HAVE TAKEN A FLAT ON RENT WORTH 18000.OUR HRA ENTITLEMENT IS 4000PER PERSON.CAN WE GET ALL 5 PEOPLE HRA WHILE SHARING FLAT. IF YES THEN HOW TO TAKE TAX EXEMPTION ALSO.
Hi,
Yes you can avail HRA and tax exemption for certain portion of HRA also. The tax benefit on HRA is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation.
How much is exempted?
The exemption for HRA benefit is the minimum of:
i) Actual HRA received
ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and
iii) Excess of rent paid annually over 10% of annual salary
The minimum amount in above 3 shall be eligible for exemption. The tax benefit is available to the person only for the period in which the rented house is occupied.
Yes you can avail HRA and tax exemption for certain portion of HRA also. The tax benefit on HRA is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation.
How much is exempted?
The exemption for HRA benefit is the minimum of:
i) Actual HRA received
ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and
iii) Excess of rent paid annually over 10% of annual salary
The minimum amount in above 3 shall be eligible for exemption. The tax benefit is available to the person only for the period in which the rented house is occupied.
Helpful?
Adv. Siddhant Sharma
Delhi | 500+ Answers
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