Be advised that the tax exemption is calculated on the basis of the amount mentioned in the rent receipt, even if your employment pays you a higher payment towards HRA.For the purpose of HRA claim, salary will include your basic salary and dearness allowance only.Consequently, your employer will be bound to deduct TDS according to your tax bracket. In case you fail to do so, you will not be able to claim HRA. You may have to provide a copy of your landlord's PAN in case the yearly rent exceeds Rs 1 lakh or Rs 8,300 monthly, aside from mentioning the number in the rent receipt.In case the payment has been made through a cheque, the revenue stamp is not required. You will have to affix a revenue stamp on the rent receipt if the cash payment is more than Rs 5,000 per receipt.However, receipts for all the months, for which you are claiming HRA, must be submitted. It could be on a quarterly, half-yearly or an annual basis. You don't have to submit rent receipts for each month.The tenant will have to share the rent receipts with his employer in order to claim HRA exemption if he pays a monthly rent exceeding Rs 3,000.Even then, creation and submission of rent receipts is necessary. In case you pay the rent through net-banking or other online channels, your payment history would also act as a proof of the payment.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |