[caption id="attachment_214" align="alignleft" width="300"] House_rent_allowance_HRA[/caption] House Rent Allowance (HRA) is best tax saving tools available to employees. With these you can save upto 50% of your salary if you reside in Metro (40% of your salary if you reside in non-metro). As per income Tax act, for calculation House rent allowance least of the following is available as deduction :
- Actual HRA received
- 50% / 40%(metro / non-metro) of basic 'salary'
- Rent paid minus 10% of 'salary'.
PAN No of Landlord compulsory if Rent Exceeds Rs 1,00,000/- in a year
Que: Can I claim both HRA and Housing loan benefit?
Income tax benefits for both home loan and HRA are governed by different sections of income tax act. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. Make sure that you include rental income from the property you own under income from house property.Que: I am paying rent in cash for Rs 15,000/- but my Landlord is not providing me with PAN copy. What should I do?
Unfortunately, There is no legal way you can force landlord to provide pan copy. Rent and HRA is one of the effective tax planning tips for salaried employees. It make sense to claim full HRA tax benefit.Way out in such case where landlord is not providing PAN copy is:
- Look for new landlord and before moving to new home check if he is ready to provide pan copy.
- You can look for any friend or relative who is taking housing loan interest benefit and has actually not leased out his property. If housing loan interest is high and he will be showing his property as deemed to be let out. In this case he will get name of tenant and you will HRA benefit.
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