Hi,
I get paid as a professional fees for which form 16a is issued to me. The company deduct 10% TDS as the rule.
My question is for the professional(me) geting paid this way can I get tax exemption for house rent and upto what limit. What other ways are through which I can get tax exemption. I am bit starter on this so any help will be very appreciated!!!
Claim deduction u/s 80GG :
Deduction will be lower of the following:
a. R.s 2000/- per month;
b. Rent paid in excess of 10% of total income (TI); or
c. An amount equal to 25% of TI.
You will have to file ITR-4, and so you can claim expenses incurred toward earning your professional fees.
As Harpreet stated it is "house rent". Hence, it is a personal expense which cannot be claimed as business expense until n unless profession is carried on from the same premise.
Thanks Everyone for your valuable response!!!
As I can understand from the above discussion, I cannot avail Tax exemption for rent I pay.
Can I avail tax exemption for the Fixed Diposit I make for 5 yr plan with SBI and is there a cap on the limit upto which I can get tax exempted.
Please consider me a dumb while explaining
Thanks in Advance
CCI
Pro
CAclubindia
