EXPLAINED! Income Tax benefit for salaried who don't receive HRA, but stay in a rented house
Income Tax Calculator: While filing one's Income Tax Return (ITR), first and foremost objective of taxpayers is to save as much of the income tax outgo as they can.
Income Tax Calculator: While filing one's Income Tax Return (ITR), first and foremost objective of taxpayers is to save as much of the income tax outgo as they can. But, it doesn't mean the taxpayer should commit any mistake. To avoid any kind of ITR filing mistake, it is advised that earning individuals learn about income tax benefits properly, especially the one's related to HRA. As per the tax and investment experts, it has been found that majority of the confusion that arises while filing ITR is on the mixing of those salaried individuals who receive HRA (House Rent Allowance) and those who don't receive HRA. They said that for those who get HRA, it is clear that the taxpayers need to be actually paying rent for the residential accommodation occupied by them. If they are not paying any rent, they cannot claim tax exemption for HRA. But, what about those who don't get HRA but living in a rented accommodation?
Explaining the income tax benefit for salaried who don't receive HRA in their monthly salary, Balwant Jain, a Mumbai-based tax and investment expert said, "Section 80 GG provides for tax relief to the salaried people who are not in receipt of any HRA from their employer, or even to the self-employed people who pay rent for residential accommodation occupied by them. The tax benefit is in the form of deduction from taxable income."
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On who is eligible for income tax benefit under Section 80CG; SEBI registered tax and investment expert Manikaran Singhal said, "In the Union Budget 2020, the Finance Minister Nirmala Sitharaman has proposed two income tax slabs. Those who avail the old income tax slab will be eligible for this income tax exemption. The income tax deduction available in such cases is Rs 5,000 per month, subject to a maximum of 25 per cent of the total taxable income. So, effectively, the maximum deduction, which is available to you is Rs 60,000 annually."
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