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Income tax exemption is available on living in a rented house, see details here

The Income Tax Department has appealed to the taxpayers to file ITR by accessing the e-filing portal. Income Tax Department says that income tax return or ITR filing can be done by visiting the official website incometax.gov.in.




New Delhi. If you have not yet filed your Income Tax Return, file the return immediately. The last date for filing income tax return is approaching. You can file your income tax return till 31st December. Your income tax return can be filed by visiting the e-filing portal of the Income Tax Department.

The Income Tax Department has appealed to the taxpayers to file ITR by accessing the e-filing portal. Income Tax Department says that income tax return or ITR filing can be done by visiting the official website incometax.gov.in.

The new portal also has an easy download facility for Form 26AS. Form 26AS, also known as Annual Statement Form. It is an important document, which contains all the tax related information of the taxpayer like TDS, Advance tax etc.

Exemption on rent on house without HRA

If you want income tax exemption on the amount given as house rent, then the first condition is to be salaried. Your salary includes House Rate Allowance (HRA), which is tax exempt up to a certain limit under Section 10(13A) of Income Tax.

Know what are the terms and conditions

For employees working in most companies, house rent allowance is considered as part of their salary. The provision for claiming deduction on house rent paid to employees was introduced in the Income Tax Act 1961. At the same time, such employees can claim exemption on house rent paid under section 80GG of the Income Tax Act.

Also, this rule also applies to self-employed people, but to get the benefit of exemption, it is necessary to understand some terms and conditions. For example, an employee should not have received HRA during the financial year to claim deduction under section 80GG.

A taxpayer claiming exemption in HRA cannot claim deduction on rent paid under section 80GG. Also, the person claiming deduction under section 80GG should not have any house in the city. There should not actually be any house in the name of the spouse, minor child or Hindu Undivided Family in the city in which the office is situated or the business is carried on. On the other hand, if an employee has a house in the city where he also works, then he will not be able to claim the deduction.

How to get the benefit of deduction?

The taxpayer will have to file a Form 10BA, after which he will be able to claim this deduction. At the same time, the taxpayer who has opted for the alternative or new tax regime will not be able to claim this deduction. It is assumed that the deduction is to be calculated on the basis of a single formula.

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