You have an HRA component in your salary structure 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.Įligibility criteria to claim HRA Exemption When you file your ITR (Income Tax Returns), you can see the deduction in Part B of Form 16 generated by your employer. The employer deducts the HRA from your salary. The HRA amount is seen in the tax projection statement given by the employer at the start of a financial year. HRA exemption reduces the taxable salary wholly or partially. Salaried individuals who receive house rent allowance as a part of their salary can claim HRA exemption, provided they make a payment towards the rent of the place they live in. Here is a detailed guide on how to claim HRA exemption when you file tax returns: You can do this only if the employer does not claim HRA benefit on your behalf. If you want to claim HRA exemption, you can do so at the time of filing your income tax returns. However, if you do not live in your own house, the HRA is fully taxable. Your landlord, in this case, can also be your parents. The allowance is offered for expenses you incur related to rented accommodation. If you are a salaried individual and live in a rented house, you can claim the HRA to lower your tax* liability, either partially or wholly. HRA (House Rent Allowance) is one of the most important allowances offered to salaried individuals which is present in a salary slip.
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