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Tax Exemption: You will get instant tax exemption in this section of Income Tax- Take advantage while filing ITR

By
Shyamu Maurya
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Cash Deposit Limit: Income Tax Department can impose penalty on depositing so much cash in bank accountIncome Tax Department: If you have got your ITR filed by people who are not professionals in the greed of getting a big refund, then you are going to get into trouble. In the last few years, cases of employees getting refunds by showing fake donation receipts, expenses etc. in their returns have been caught in many states. After this, strictness has started in the matter of refund across the country. According to tax experts, most taxpayers are getting their returns filed by non-professionals. These people are trapping taxpayers by luring them with a big refund. In such cases, the possibility of the taxpayer getting into legal trouble increases. Close scrutiny of taxpayers begins The Income Tax Department has decided to conduct a strict investigation of large refund claims made fraudulently. Under this, monitoring of such employed people who are filing ITR collectively from a single agency will increase. The Central Board of Direct Taxes (CBDT) has issued new guidelines (SOP) in this regard. According to these instructions, suspicious returns and refunds will be marked using Artificial Intelligence (AI). The department has started a close scrutiny of those taxpayers whose returns came under scrutiny in the last 9 years. This also includes employed people who have filed returns collectively from a non-professional agency. The refund of many of these taxpayers is stuck for months. Department can recover refund It is being said that this step is likely to cause refund to get stuck this year. Experts say that the Income Tax Department has the right to recover the refund of the last four years if the refund claim made by a taxpayer is found to be wrong. Check refund status like this Go to the Income Tax Department portal (www.incometax.gov.in). Log in by entering user ID (PAN number) and password Click on My Account and open Refund/Demand Status. Select Income Tax Returns here. Now click on the receipt number. After this a new page will open, where all the information related to ITR will be visible. What to do in case of delay First of all check your e-mail. Income Tax Department sends refund or any kind of additional information or notice through e-mail. If the ITR status shows that the refund claim has been rejected, taxpayers can request for re-issue of refund. If the status shows that the claim is pending, they can contact the e-filing portal/assessing officer and request for early settlement. If there is still a delay.... Contact Income Tax Department: You can contact the Income Tax Department by calling their helpline 1800-103-4455 or email them at ask@incometax.gov.in. They can assist you with the status of your refund.

Tax exemption benefits: HRA comes under the purview of tax exemption. This part is deducted from your total income before calculating Gross Taxable Income.

Tax Exemption: When it comes to tax savings, most people think of Section 80C of the Income Tax Act. However, there are several other sections under the Income Tax Act that can give you tax benefits. One of them is Section 10 (13A), under which you can avail tax exemption on House Rent Allowance (HRA). Let’s know how:

A salaried person definitely gets House Rent Allowance (HRA). It is an important part of the salary. It helps in saving tax. However, it is necessary to pay rent for this. But, how can you avail the benefit of House Rent Allowance without living on rent. But, how can it be claimed?

How to avail the benefit of HRA?

House Rent Allowance is a major part of the salary. It plays an important role in saving tax. However, there is a limit on House Rent Allowance (HRA) and there are some important conditions as well. Tax benefit is available on HRA under Section 10 (13A) of the Income Tax Act. HRA comes under the purview of tax exemption. Before calculating Gross Taxable Income, this part is deducted from your Total Income.

You can also get benefit like this

Self-employed people do not get the benefit of this. Even if you live in your own house, you cannot avail of this benefit. To avail the benefit of HRA, it is necessary that you live in a rented house. Suppose you work in Delhi-NCR and have to commute to office from your home, will you get the benefit of HRA? This is an important question.

Take advantage without living on rent

If you do not live on rent but live with your parents or a relative and have to commute to office from there, then also you get the benefit of HRA. According to tax experts, if the house is in the name of any of your relatives like parents, then you can take tax exemption on it. For tax exemption, rent will have to be paid to parents. For this, rent agreement and rent receipt will be required. However, the total amount of rent will have to be shown as the income of the parents. If he comes under the tax bracket, then the rent amount will be added to his total income and he will have to pay tax on it. If he has no income, then this will also be a source of income for him. In this way double benefit can be availed. The condition is that the house should not be in the name of the taxpayer.

How will the calculation be done?

There are 3 conditions regarding HRA.

1. It will be 40/50 percent of your basic salary. For metro cities (Delhi, Mumbai, Kolkata and Chennai) the limit is 50 percent and for non-metro cities it is 40 percent.

2. How much HRA is the company giving you.

3. How much rent have you actually deposited – minus 10 percent of the basic salary.

In the calculation, Dearness Allowance is also included with the basic salary, if you are getting the benefit of DA. The minimum amount in the above three conditions will get the benefit of tax exemption.

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