Sage-Tips

How can I claim my rent without HRA?

For them, Section 80 (GG) of the Income-tax Act offers help. An individual paying rent for a furnished/unfurnished accommodation can claim the deduction for the rent paid under Section 80(GG) of the I-T Act, provided he is not paid HRA as a part of his salary by furnishing Form 10B.

What happens if HRA is not claimed in Form 16?

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.

Is it compulsory to give HRA?

1) Is it compulsory to pay HRA as part of wages to an employee? No. It is not compulsory for an employer to pay certain sum as HRA as part of the wages unless there is a statute (law) in that state making payment of HRA at certain minimum rate as compulsory.

Can I pay rent to grandfather?

You can pay the rent to your grandfather for staying in their house. Yes you need to save the documentary proof like receipt, agreement and make the bank transfer as if the payments are to any third person. ALso, ensure that your grandfather reports the transaction / income in his tax filing.

Can I claim HRA exemption if I live in a rented house?

If you are staying in a rented house and getting House Rent Allowance as a part of your salary, you can claim for full/partial HRA exemption as per the Section 10 of IT Act.

What are the HRA tax exemptions for self-employed?

The self-employed can also claim for deductions and HRA tax exemptions, towards the House Rent Allowance (HRA). They can claim the benefits under the Section 80 GG. This Section can also be used to claim the HRA tax exemptions by the salaried employees when they do not receive any HRA. HRA Tax Exemption for the Salaried Individuals

What is the difference between rent allowance and HRA?

House rent allowance is taxable under the head salary. Exemption from HRA in respect of ‘rent’ paid is allowed under section 10 (13A) and is regulated by Rule 2A. HRA is a taxable allowance against which exemption is allowed if rent is paid by the employee.

What are the tax exemptions on House Rent Allowances?

Even if the employer refuses to provide for the tax benefits of the House Rent Allowances, the employee can claim the HRA tax exemption when he or she files the income tax returns. The exempted monetary amount can be received as the refund of the excess TDS. Tax Exemptions on HRA When the Rent is Paid by More Than 1 Member of the Family:-