Dear sir Plz guide us that we can claim Rebate tax calculation on salry Regardsboth House rent allowance and Interest on house loan repayment on
From India, Bhopal
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From India, Bhopal
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Dear Vimal,
Understanding House Rent Allowance (HRA) and Tax Benefits
HRA is one of the tax benefits for employees. To claim HRA, you should have House Rent Allowance (HRA) in your salary breakup. In general, every employer provides this to their employees for tax benefits.
Rules for Claiming HRA
To claim HRA, there are certain rules according to Income Tax norms:
1. Actual HRA received (as mentioned in your salary breakup).
2. 40% of Basic Salary (in metropolitan cities, it is 50%).
3. Rent Paid - 10% of Basic Salary.
Among these, whichever is less will be considered for exemption under Section 10 as per the Income Tax Act.
Understanding House Loan Deductions
Regarding a house loan, this falls under Section 24 of the IT Act. Repayment of interest is considered up to Rs. 1,50,000 per annum, and the principal amount is considered under Section 80C, with a maximum of Rs. 1,00,000 (note that altogether it will be Rs. 1,00,000 under Section 80C).
To my knowledge, you cannot claim HRA and interest on a housing loan at the same time. You can claim either one. However, if your house is in another city, and you are working in a different place and paying rent, then you can claim both.
Note that for claiming either HRA or a housing loan, you must submit the proper documents.
I hope this gives you some idea according to my view, and I wish you all the best.
Regards.
From India, Hyderabad
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86Understanding House Rent Allowance (HRA) and Tax Benefits
HRA is one of the tax benefits for employees. To claim HRA, you should have House Rent Allowance (HRA) in your salary breakup. In general, every employer provides this to their employees for tax benefits.
Rules for Claiming HRA
To claim HRA, there are certain rules according to Income Tax norms:
1. Actual HRA received (as mentioned in your salary breakup).
2. 40% of Basic Salary (in metropolitan cities, it is 50%).
3. Rent Paid - 10% of Basic Salary.
Among these, whichever is less will be considered for exemption under Section 10 as per the Income Tax Act.
Understanding House Loan Deductions
Regarding a house loan, this falls under Section 24 of the IT Act. Repayment of interest is considered up to Rs. 1,50,000 per annum, and the principal amount is considered under Section 80C, with a maximum of Rs. 1,00,000 (note that altogether it will be Rs. 1,00,000 under Section 80C).
To my knowledge, you cannot claim HRA and interest on a housing loan at the same time. You can claim either one. However, if your house is in another city, and you are working in a different place and paying rent, then you can claim both.
Note that for claiming either HRA or a housing loan, you must submit the proper documents.
I hope this gives you some idea according to my view, and I wish you all the best.
Regards.
From India, Hyderabad
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Income Tax Calculation 2009-10 - Salaries.xls