Tax Saving: House Rent Allowance is such a way through which even salaried people can easily save tax.
Tax Saving Idea: There is not much time left for the end of the financial year 2022-23. Taxpayers have the last chance to save tax. Demand for details of their investment in companies has started from employed people. Employed people adopt many tricks to save tax. But today we are telling you such a solid method, by which you will be able to save tax easily. House Rent Allowance is one such method through which even salaried people can easily save tax.
HRA is a part of the salary of any employee. When you will see your salary slip, then the column of HRA will appear in it and you will also get the details of the amount related to it. HRA is not a taxable part of salary. Through this you can easily save tax. But the condition to claim it is that the taxpayers should live in a rented house. You can claim tax exemption from rent allowance under section 10 (13A) of the Income Tax Act.
Now let us understand how much tax any taxpayer can save on HRA. It depends mostly on three conditions. The first is that how much is the share of HRA in your salary. Second- If you live in a metro city like Delhi, Mumbai, Kolkata then the HRA will be 50% of the basic salary. At the same time, HRA for non-metro is 40 percent of the salary. Third- the remaining amount after deducting 10% of the annual salary from the annual rent paid for the house.
Calculate like this
If you want to calculate your HRA, first of all see how much HRA you have received in a financial year. For this, along with basic salary, dearness allowance and other things should also be attached. Only then you will be able to save your tax. Suppose you do a job in Delhi and live here in a rented house. You pay an amount of Rs 15,000 every month as rent. Your basic salary is 25,000 thousand rupees and DA is 2000 rupees. In this situation, you get one lakh rupees as HRA from your company. In this case, you can save maximum tax of one lakh rupees as HRA.
Rent agreement should be valid
You must have a valid rent agreement to claim HRA. You and the landlord must sign the agreement. Also, the agreement should be a stamp paper of Rs 100 or Rs 200. If the annual rent is more than one lakh rupees, then it is mandatory to give the PAN of the landlord along with the receipt.
