Wednesday, 26 December 2012

Salaried Employee, How to get Income Tax Exemption of HRA (House Rent Allowance)?

Regarding Tax benefit, Salaried Assessees who are in receipt of House Rent Allowance (HRA) from an employer can claim an exemption u/s 10(13A) of the Income Tax Act-1961.

When the Salaried Employee not receiving HRA then, Any individual who is not in receipt of HRA from the employer can claim deduction towards rent payment for residential accommodation u/s. 80GG of the Income Tax Act.

The condition precedents for deduction u/s 80GG are as under:-
  • Salaried Employee has to prepare a declaration in Form No.10BA.
  • Salaried Employee or his minor child, spouse or HUF of which he is a member, should not be owner of a house at the place where he ordinarily resides or performs his duties; or he should not be owner of any house at any other place, the income therefrom is to be determined under section 23(2) (a) or, as the case may be, under section 23(4) (a) ( i.e.income from self-occupied house property).

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