I AM LIVING IN A RENTED HOUSE AND MY MONTHLY RENT IS 8700/- P.M . AS I KNOW I HAVE RELAXE OF RS 2000/- P.M UNDER SECTION 80GG OF INCOME TAX ACT. AND I AM GETTING 7500/- HRA IN MY SALARY HOW TO TAKE BENEFIT IN INCOME TAX.
27 September 2014
Yes you can take the benefit. Least of the following is exempt.
1. Actual house rent allowance received from your employer 2. Actual house rent paid by you minus 10% of your basic salary 3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro.
27 September 2014
As per the Indian income tax law, the HRA exemption should be calculated as the least of the following. 1. Rent paid in excess of 10% of basic salary. 2. Actual HRA received by the employee. 3. 40% percent of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city
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