ITR filing last date: The deadline for filing income tax returns has been extended. Know – How much income tax can you save through HRA.
ITR filing last date: Government has now given the last date for filing income tax returns for the financial year 2019-20 (Financial Year 2019-20) to give relief to individual income tax payers. Has extended till January 2021. With this, the deadline for filing returns (ITR) for companies has been increased by 15 days to 15 February.
Taxpayers (Individual Income Tax Payers) who have not yet filed their returns (ITR), hurry up. Otherwise they can also be fined.
If you are employed, you will definitely get House Rent Allowance (HRA), because it is an important part of salary. Here we are going to tell you about the tax exemption on HRA. Come, know how much tax you can save through house rent.
Also Read: ITR: You May Not Claim Income Tax Refund This Year: Here’s Why
Let us tell you, House Rent Allowance (HRA) is an allowance given to an employee. It is given by the employer to his employee to pay the rent of his house. As per the Income Tax Act, tax exemption on HRA is available under section 10 (13A). Total taxable income is calculated by subtracting HRA from total income. But if the employees live in their house and do not pay rent for any house, then their HRA comes under the tax net.
If the employee has a rent agreement with the landlord, then they get the benefit of tax deduction under HRA. This benefit is given under HRA for up to 50 per cent of basic salary to employees living in metropolitan cities and up to 40 per cent of basic salary for employees living in small towns. Apart from this, even after paying 10 percent of the total annual income in the form of house rent, it also gets its benefit.
If you have paid rent of 15,000 rupees per month or more than one lakh rupees in a year as rent, then it is mandatory to give PAN number of the landlord to get the rebate.
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