House Rent Allowance: House Rent Allowance (HRA) is given to the salaried employees for renting the house. With the help of house rent allowance, you can get the benefit of income tax exemption. HRA is exempted under section 10 (13A) of the Income Tax Act.
The same, the HRA received by the person who lives in his house is taxed. You can claim exemption on HRA while filing Income Tax Return (ITR). HRA tax exemption is available on your salary on submission of rent slip of the rented house. You can take full or partial benefit of HRA. If you want to get tax exemption on HRA, then you will also have to provide the PAN number of your landlord as rent is the income of the landlord.
It has also been seen many times that the landlord refuses to give his PAN number or he does not have a PAN card at all. In such a situation, you cannot take advantage of tax exemption without the PAN card of the landlord. Explain that taxable income is calculated by deducting HRA from total income. One thing must be kept in mind that if your annual house rent is more than one lakh, then you must give PAN card of the landlord to take advantage of HRA tax exemption. If your landlord does not have a PAN card, then you will have to give a declaration of not having a PAN card along with the name and address of the landlord. If your annual rent is less than 1 lakh, then you will not have to give the PAN number of the landlord along with the rent receipt.
Know about House Rent Allowance
House Rent Allowance i.e. House Rent Allowance, is an allowance given to any salaried person. The employer gives this allowance to his employee to pay the rent of his house. This allowance is taxable. The benefit of tax exemption on HRA can be availed only by the salaried person whose salary includes HRA and he lives in a rented house. If the house rent is paid to a family member only, then in such a situation also you will get exemption on HRA. At the same time, if the employee has his own house but he lives in a rented house in the same city or in any other city, he can still get exemption on HRA.
They do not get the benefit of tax exemption
Income earned in the form of HRA can save tax only by a salaried person whose salary includes HRA and he lives in a rented house. If a person has his own business then he cannot avail tax exemption on HRA. It is not necessary that you pay rent to the landlord only to get the benefit of tax exemption under HRA. You can also pay rent to your parents to avail tax benefits but parents will have to pay income tax on it by showing it as income from house or property. But this rule is not applicable with husband and wife as it is not allowed under the rules of Income Tax Act.
Know the last date to file ITR
The last date for filing income tax return is 31 December 2021. The Income Tax Department had informed by tweeting in the month of September that the last date for filing returns has been extended to 31 December 2021. Earlier this date was 30 September 2021.