The benefit of tax exemption can be taken only in the old tax regime.
Under Section 10(13A), tax exemption can be claimed on HRA through rent agreement.
First check in your salary slip how much HRA has been given.
New Delhi. The month of March is going on and taxpayers are trying their best to save their income tax. House Rent Allowance (HRA) is the most effective tool for salaried people to save tax, in which tax can be saved without any investment. Employed people would know that it is very important to get a rent agreement made to claim HRA. Without this, the benefit of tax savings cannot be availed. If you are also going to make a Rent Agreement to avoid tax deduction, then do keep in mind some special things, otherwise there will be a double loss.
Benefit only in old tax regime
First of all, note that by making a rent agreement, you can take advantage of tax exemption only in the old tax regime. Any kind of tax exemption has been abolished in the new tax regime. In the old regime, under Section 10(13A) of the Income Tax Act, tax exemption on HRA can be claimed through a rent agreement. Before claiming, check your salary slip to see how much HRA has been given. You will get tax exemption in the same proportion.
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Take special care of the stamp in the agreement
There is a need to pay special attention to the stamp while making the rent agreement. Get the rent agreement made on Rs 100 or Rs 200 stamp only. If you pay an annual rent of more than Rs 1 lakh, then it is necessary to give PAN and Aadhaar card of the landlord. It is also very important to have the signature of the landlord on every page of the agreement.
Mention the monthly rent in the agreement
While making the rent agreement, keep in mind that only the monthly rent should be mentioned in it. Some people get their rent agreement made for 6 months or for a year and get it fixed. Due to this, there is a problem in calculating the monthly rent. Apart from this, while making the claim, you must also attach the rent slip i.e. every month’s rent receipt. Otherwise your claim may get rejected.
specify the time in the agreement
For how long you have been living in the house on rent, it is also necessary to mention it in the rent agreement. Generally, people make an agreement for a year or 11 months, which can be extended further. The special thing is that the agreement should be of the same period for which you are claiming tax exemption.
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add extra cost
You can also include your extra expenses in the rent agreement. For example, if you have spent something different in a rented house, such as installing a chimney in the kitchen or making a duct for ventilation. You can also include all these expenses in the rent agreement. You will get the benefit of tax exemption on this.
Tags: business news in hindi, income tax, income tax exemption, income tax planning, Non-salaried persons, save money
FIRST PUBLISHED : March 21, 2023