Auto Calculate Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2023-24 and
A.Y.2024-25 | There is good news for both salaried and self-employed people when it comes to tax
benefits for those living in rented accommodation. While salaried taxpayers can claim an exemption
from House Rent Allowance, there is a provision that provides tax relief to the self-employed. Let's
explore the details of this provision and the conditions to be met.
You may also like- Automated Income Tax Form 16 Part B for the F.Y.2022-23 and A.Y.2023-24 which can prepare at a time 50 Employees Form 16 Part B
Under Section 80GG of the Income Tax Act, individuals who do not have residential accommodation in the discharge of their official duties, employment, business, or profession can claim tax relief on rent paid. This rule applies to the taxpayer, his spouse, minor child, or Hindu Undivided Family (HUF) if the taxpayer is a member. To get these benefits, it is mandatory to submit Form 10BA which contains the details of the house rent payment.
The Criteria for availing of these benefits fulfill certain factors. The difference is less than 5000/- thousand per month, 25% of the total rent, or 10% of the actual rent paid.
You may also like- Automated Income Tax
Form 16 Part A&B for the F.Y.2022-23 and A.Y.2023-24 which can prepare at a
time 50 Employees Form 16 Part A&B
To qualify for this exemption, individuals should not own any residential property and their spouse, minor child or HUF should not own residential premises where the taxpayer usually resides. Taxpayers need to file a declaration in Form 10BA to prove their eligibility.
It is important to note that House Rent Allowance (HRA) and deduction under section 80GG are different from each other. This means that taxpayers can only claim one of these exemptions depending on their circumstances.
Finally, Non-Eligible Individuals, including non-salaried individuals, as well as self-employed and non-Employed salaried employees, can benefit from tax relief on rent paid through Section 80GG. Eligible taxpayers can benefit from tax and financial assistance by complying with the specified conditions and submitting the necessary documents.
