Is it possible to get both of the Income-tax Exemption from HRA and Home Loan
Interest? The answer is yes if you do not "live" in your own home. In other
words, if you work in "one city" and live in a rented house there and your own
house is in "another city" and it can be occupied or rented by your parents.
HRA is the allowance paid by employers to
employees to cover the cost of rented housing. The Income Tax Act may exempt
HRAs if the employee is in a rented home. To claim tax exemption, an employee
must pay rent for the house he or she occupies. If an employee lives in his or
her own home or does not pay any rent, he or she cannot claim a discount for
HRA.
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Income tax law allows a rebate for the
interest on home loans paid by an individual taxpayer. This interest discount
is available for every housing loan taken for the purchase, construction,
renovation or reconstruction of a residential home. The amount of the tax
deduction depends on the purpose for which the home was occupied - such as
whether the home was occupied for personal use or for rent.
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In some cases, a taxpayer may live in a
rented house and pay interest on a homeowner. This situation may arise where a
taxpayer works in a city that is separate from his own city or he pays interest
on a loan taken to buy or build a house for his parents, wife or children.
But the answer is no if you live in a
separate house in the same city and have your own house in the same city. In
other cases, where the taxpayer lives in his own home or, if someone does not
pay rent for his stay, HRA is a fully taxable income tax law.
Special case:
1) If you live with your parents, you can
claim an HRA discount by paying their rent. In such a situation, make sure that
you have the correct documents such as rent agreement, rent receipt, a record
of rent-paid transactions.
2) Even the rent paid to his wife can be claimed under the HRA waiver if there is documentation to prove the arrangement is genuine.
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Automated Arrears Relief Calculator U/s 89(1) with Form 10 E from theF.Y.2000-2001 to F.Y.2021-22
If you have not got any House Rent from
your Employer?
If you are paying rent for residential
accommodation but you have not received an HRA from your employer, you can
claim a deduction under section 80GG of the Income Tax Act.
But the conditions for claiming section
80GG in the tax return are:
1) If You are self-employed / freelancer
or salaried person.
2) You have not received HRA at any time
of the year for which you are claiming 80GG HRA. In other words, the HRA
component should not be part of your salary to claim Section 80GG.
3) The taxpayer or spouse or minor child
should not own the home property.
4) It is mandatory to submit Form 10 BA
for claiming the deduction U/s 80 GG
How to reduce your tax under section 80GG?
Pursuant to Section 10 (13A), the minimum
of the following shall be deemed to be the amount of deduction under section
80GG:
1) Rupees Five Thousand per month or
Rupees Sixty thousand per year.
2) The amount of annual rent minus 10% of
the total income of the taxpayer.
3) 25% of the total income consolidated
for one year.
As already mentioned in the condition of
claiming section 80GG, the taxpayer has to submit a 10BA form to claim
deduction under section 80GG. Form 10BA can be submitted online by logging on
to the Income Tax e-filing website. In Form 10 BA, the taxpayer has to declare
the amount of rent paid and the name of the landlord.
However, we can determine the salary structure. Some employers offer the option to do this, so talk to your
employer.
Feature of this Excel
Utility:-
1) This
Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This
Excel Utility has all amended Income Tax Section as per Budget 2021
3)
Automated Income Tax Form 12 BA
4)
Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5)
Individual Salary Structure as per the Non-Govt(Private) Concern’s Salary
Pattern
6)
Individual Salary Sheet
7)
Individual Tax Computed Sheet
8)
Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22
9)
Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22
10) Automatic Convert the amount into the in-words without any Excel Formula
