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Exemption of house rent

Tax planning 230 views 3 replies

Guest

I live in delhi NCR. I paid rent for a houue but rent recipt not given. Employer also dont pay HRA separately (xconsolidated salary).

Can I avail benifit of maximum 5000 PM towards House rent as I dont have any house of own in the city of work.

I was told by some accoutnant that there were some amendement and govt has allowed upto 5000 PM House rent exepmtion in such cases

Kindly advise/clarify

Replies (3)

Dhruv Shah

Article Student

357 Points Posted on 08 July 2017

Yes, u/s 80GG an assessee who doesn't get HRA from employer can get deduction in respect of the rent paid.

The maximum amount of deduction is-
1. 5000 per month
2. 25% of total income &
3. Rent actually paid as reduced by 10% of total income

Guest

Thanks but recipet is not given by landlord as commonly done. And payment ios in cash. Is there any mendmeent that those who dont have rent recipt and HRA paid by employer can avauil rent benefit upto 5000 PM in metro area?

Dhruv Shah

Article Student

357 Points Posted on 09 July 2017

I think to get exemption, receipts of rent is mandatory. don't know what the practicality is.

I don't think there is any amendments as you told.

& yes by the way sorry....in the first reply i told u about the maximum deductible amount but forgot to inform that the maximum amount deductible is the least of the three options that I have mentioned above.