If you pay rent but do not receive House Rent Allowance (HRA), it means you won't be able to claim any tax benefits related to HRA. HRA is a component of salary provided by employers to employees to meet the cost of renting a home. However, even if you don't receive HRA, you may still be eligible for tax benefits related to the rent you pay, U/s 80GG of the Income Tax Act.
Individuals who do not receive HRA from their employer can claim a deduction for the rent paid for their accommodation.
Deduction under section 80GG.
The least of the following sums is eligible for deduction:
a. Total Rent paid during the year minus 10% of Total Income for the year.
b. 5,000 rupees per month
c. 25% of the Total Income of the Year.
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