Sage-Tips

Can I claim society maintenance in HRA?

Is HRA inclusive of maintenance charges? No, HRA is paid towards rent only. You won’t be able to claim the maintenance fee as HRA. The maintenance charges are not considered as the landlord’s earnings to be calculated for his/her income tax.

Can we deduct society maintenance fees on rental property?

No. 1463/Mum/2012 dated 03/07/2017:- While calculating annual value of the let out property, maintenance charges paid to the society by the assessee is admissible deduction from the annual let out value under section 23(1)(b).

Can maintenance be included in rent?

Yes, always monthly maintenance charges become part of rent and you can use the same for income tax purposes. section 10(13A) of Income tax act maintenance is not forming part of the rent so you cannot seek deduction or HRA exemption on the maintenance part.

What is the proof required for HRA exemption?

What documents are required for HRA exemption? Documents like rent receipts and rental agreements will be required to be submitted to the employer for claiming deduction for house rent allowance. If the payment of rent is more than Rs 1 lakh per annum, then PAN of the house owner will be required to be submitted.

Does rent paid include maintenance charge for HRA?

No. HRA deductions are allowed only for rent payment. Maintenance charges, electricity charges, utility payments, etc. are not included.

Can I claim maintenance fees on my taxes?

The short answer is YES—a percentage of your monthly maintenance is tax deductible and this percentage is different from unit to unit depending on number of shares owned.

What is included in maintenance charges?

“Maintenance charges primarily includes charges towards upkeep and maintenance of common areas and facilities, security services including CCTV, etc. Common facilities include elevators, club house and generators.

Who pays for maintenance on a rental property?

When the flat is rent, Tenant pays the maintenance fee. The utility of water, electricity, gas, and common amenities like gym, swimming pool, clubhouse, children play, lift, common area cleaning and security are enjoyed and utilized by tenant. Hence payment towards such maintenance is paid by tenant.

How do I claim my HRA deduction?

The employer deducts the HRA from your salary. When you file your ITR (Income Tax Returns), you can see the deduction in Part B of Form 16 generated by your employer. If you do not file your HRA claim when filing your ITR, you can file a revised return before the end of the assessment year.

Can We claim maintenance paid to society as part of HRA?

You can’t claim Maintenance paid to Society as part of HRA. Only Rent Paid to Landlord can be claim as HRA. Further to note that if Rent Paid during Previous Year exceeds INR One Lakh, then PAN of Landlord is mandatory to claim HRA. Hope it clarifies!

How to claim HRA tax exemptions on rent paid for house rent?

In case the rent paid towards house rent is more than Rs 1 Lakh, the individual can claim HRA tax exemptions towards it. He or she will have to furnish the PAN details of the property owner, along with the rent receipts.

How to claim HRA exemption while filing ITR?

Actual rent paid minus 10\% of (basic salary + DA) After calculating the HRA exemption, taxpayers can claim it while filing ITR. In the ITR form, taxpayers are required to provide the break-up of salary, which means the basic salary including all allowances. Then you have to enter the allowances that are not exempted.

What is the maximum amount I can claim on my HRA?

HRA can’t be more than 50\% of your basic salary The full amount cannot be claimed as the exemption is based on the least of the following: Actual rent paid (-) 10\% of the basic salary. Actual HRA received from the employer