Claim Your HRA tax Deductions to Lower Taxable Income - But, Know These 6 Important Points.
Get your landlord's PAN or declaration to claim HRA tax exemption above Rs. 1 lakh. Without this, you cannot claim deduction.
Know Landlord’s PAN number
If the rent exceeds Rs.50,000 per month, tenants must deduct 10% TDS from rent payment and deposit it with the government in the name of the landlord. TDS is also applicable in case the landlord is an NRI.
TDS Mandatory in These Cases
You can maximize your HRA tax exemption by jointly claiming with your spouse or roommates. For this, the lease agreement and TDS must be maintained appropriately.
Joint HRA Exemption
You can claim both HRA exemption and home loan interest deduction. But, HRA may not be allowed by tax department if you own a house in the same city unless there is a genuine reason.
HRA & Home Loan Benefit
You can claim HRA tax exemption under Section 80GG even if you don't receive it as part of your salary, but be aware of the conditions and calculations.
Exemption Without HRA
If you have not submitted rent documents in time, you can claim the HRA exemption while filing tax return. Mention the exempted HRA amount in the allowances under Section 10.