Gaurav Arora (B.Com) (50 Points)
13 January 2013Hi
I am working in a Government School as a Teacher and my annual income in financial year 2012-2013 including arrears is 5,22000(approx), and i have saved only 30000 in PPF and cant lock much money for long line in PPF/NSC/FD etc. so i am planning to get a rent slip of 12*5000=60000 from my father who is owner of house. So what is the procedure to get Rent Slip from him. and what are the conditions which should be fulfilled to get Tax Benifit on Rent.
Please Reply
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 13 January 2013
It is a wasteful exercise if you are not receiving any HRA from your employer.
.
(Humour)
You may have to pay additional Rs. 60000/- to your father.
.
To get a rent receipt from your father- may annoy him.
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 13 January 2013
Hi, Get releif u/s 89(1).Then try for house rent allowance
Gaurav Arora
(B.Com)
(50 Points)
Replied 13 January 2013
| Originally posted by : kanagaraj | ||
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Hi, Get releif u/s 89(1).Then try for house rent allowance |
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Yeh i want to get tax rebate us 89(1) so please assist me what i need to to get rebate?
and what are the conditions my father should fulfill like House TAX is necessary or not? if necessary then what are the calculations for house tax in city like Amritsar??
Gaurav Arora
(B.Com)
(50 Points)
Replied 13 January 2013
| Originally posted by : CA Paras Bafna | ||
|
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It is a wasteful exercise if you are not receiving any HRA from your employer. . (Humour) You may have to pay additional Rs. 60000/- to your father. . To get a rent receipt from your father- may annoy him. |
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i recieve salary in the form os Basic Pay+HRA(10%)+DA+(Other Allowances)=36000(approx per month)
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 13 January 2013
As the data given by you are not sufficient- you may take help of this example -
Salary means = Basic +DA considered for retirement Benefits
1. Basic Salary 10000 D A is 5000 Hence Salary = 15000
2. HRA Rs 3000 per month
3. Rent Paid Rs 5000 per month
.
A. HRA Received 3000
B. Rent Paid - 10% of Salary = 5000-1500=3500
C. 40% of Salary i.e. 6000
Minimum of ABC is 3000. menas HRA Received is fully exempt in this case and benefit of 12x Rs.3000= Rs. 36000 can be enjoyed. Reduction in Tax Liability of Rs 3708/- is possible.
.
Gaurav Arora
(B.Com)
(50 Points)
Replied 13 January 2013
| Originally posted by : CA Paras Bafna | ||
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As the data given by you are not sufficient- you may take help of this example - Salary means = Basic +DA considered for retirement Benefits 1. Basic Salary 10000 D A is 5000 Hence Salary = 15000 2. HRA Rs 3000 per month 3. Rent Paid Rs 5000 per month . A. HRA Received 3000 B. Rent Paid - 10% of Salary = 5000-1500=3500 C. 40% of Salary i.e. 6000 Minimum of ABC is 3000. menas HRA Received is fully exempt in this case and benefit of 12x Rs.3000= Rs. 36000 can be enjoyed. Reduction in Tax Liability of Rs 3708/- is possible. . |
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Basic Pay=18450
DA(72%)=13284
HRA(10%)=1845
(RURAL/BORDER/MEDICAL/MOBILE ALLOWANCE)=3030
Total=36609
and i want to know about the procedure. means do my father need any extra document to produce rent slips?
is that necessary to pay House Tax by him????
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 14 January 2013
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Salary means = Basic +DA considered for retirement Benefits 1. Basic Salary 18460 D A is 9564 Hence Salary = 28014 or say 28000 2. HRA Rs 1845 per month 3. Rent Paid Rs 5000 per month . A. HRA Received 1845 B. Rent Paid - 10% of Salary = 5000-2800=2200 C. 40% of Salary i.e. 11200 Minimum of ABC is 1845. means HRA Received is fully exempt in this case and benefit of 12x Rs.1845= Rs.22140 can be enjoyed. Reduction in Tax Liability of Rs 2280/- is possible. .Father can give you receipts -either monthly or quarterly. It is that necessary that the house must be owned by him. |
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Suresh Narkar
(Accounts & Admin Officer)
(30 Points)
Replied 14 January 2013
Can women claim rent exemption if agreement is in her husband name?
CAclubindia
