1.1. What is HRA? Let us first understand what an HRA exactly is. HRA is a special allowance paid as a part of one’s salary by his employer to meet the rental expenses of accommodation in that city. 1.2. Conditions for claiming HRA exemption HRA is fully taxable in the employee’s hands under both the new and old regimes of the Act.
As per the provisions of Section 10 (13A) of the IT Act, exempt HRA can be claimed directly in their Income Tax Return. Thus, you can claim the actual amount of HRA in the ITR as income computed in Form 16 is on an estimated basis. When HRA deduction is claimed while filing ITR, the excess taxes that the employer would have deducted will eitherThis will help maximise the HRA exemption for the spouse in the higher tax slab,” says Kaushik. For the same couple mentioned earlier, if the husband is assumed to be in the 20% tax bracket, a 50:50 split in rent payment would translate into tax savings of Rs 32,640. However, if the husband were to claim rent payment of Rs 14,400, while the Step 1: Visit the income tax e-filing portal. Step 2: Under the 'Downloads > IT Return Preparation Software' section, download the relevant ITR utility. Step 3: Extract the utility ZIP file and open it from the extracted folder. Step 4: Enter all the requested information in the ITR form. Anagh Pal. May 8, 2023, 14:36 IST. Getty Images. HRA exemption is available only if you are living in a rented house and opt for the old tax regime. If the rent is more than ₹1 lakh per annum
Salaried individuals can claim tax exemption on house rent allowance (HRA) provided they are living in a rented house, paying rent and have certain valid documents. However, not many people are aware that their rent agreements should have certain clauses to ensure that their HRA tax exemption, claimed at the time of filing income tax return (ITR), is not rejected by the income tax department.
The Form ITR‐V – Income Tax Return Verification Form should reach within 120 days from the date of e‐filing the return. The confirmation of the receipt of ITR‐V at Centralized Processing Centre will be sent to the assessee on e‐mail ID registered in the e‐filing account. 5.| Ущուቿባбр ωшաрαтոդиպ | Оኼեсаχ υլесοጹ ыдωкрևሗυц |
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