House Rent Allowance

From house rent to donation to a political party, individuals can claim tax saving through several options

Incorporating an annual 5-7% rent hike clause in rent agreement will ease concerns

If you pay rent to spouse or parents, maintain proof for HRA claim

What tenants should ask from landlords in rent agreements; how to bring discipline in your market play. Our newsletter explains

Employees drawing substantial salaries and having rent-free accommodation provided by their employers will now be able to save more and get a higher take-home salary as the income tax department has revised norms for valuing such perquisites. The Central Board of Direct Taxes (CBDT) on August 18 notified amendments to the Income Tax Rules for valuing perquisites of rent-free or concessional accommodation by employers to employees. The rules will come into effect from September 1. The Finance Act, 2023, had brought in an amendment for the purposes of calculation of 'perquisite' with regard to the value of rent-free or concessional accommodation provided to an employee, by his employer. The rules for calculating perquisites have been notified now. "The categorisation and the limits of cities and population have now been based on the 2011 census as against the 2001 census earlier," the income tax department said in a statement on Saturday. As per the notification, where unfurnished ..

There's no prohibition to claim such deduction while living with houses owned by family member. However, to claim such deduction of HRA, one should be mindful of the following

Prepare an agreement, pay rent into their bank accounts, and ensure they pay tax on it

Businesses with a turnover of less than Rs 40 lakh per annum and salaried individuals are not required to pay the GST on rent under the new rules

A mistake in calculating tax liability could lead to a notice from the tax department

Keep rent receipts that serve as proof handy should taxmen come calling

Exemption can also be claimed on rent paid despite owning a house, provided a few conditions are met

But in serious cases, a lawyer arguing in person can be more persuasive

There are many of them, but only a few can be used to offset the tax burden

Tenants who overstay in premises beyond their agreement would end up paying two times the rent for the first two months and four times afterwards

You need to have a leave & license agreement, proof of money paid and proof of owner's tax status