Comments (3)
-
Kumar Mohit
Thanks for the tips
-
Raj P
Very useful....thanks Hardik...
-
Gary Balfour
I don't live in India but that was helpful
“Can you please reduce the rent for the initial few months?”, Trupti was convincing the landlord.
Trupti had shifted to Jaipur 10 days ago, as after quitting her job, she was stepping into the world of entrepreneurship to guide and mentor MBAs.
“Sir, it will be great if you can please reduce the rent for 6 months till I don’t start earning significantly,” Trupti was pleading, “I can’t even claim House Rent Allowance now since I am not a salaried individual anymore. This rent will cost me an arm and a leg at present.”
“No, this rent won’t be as expensive to you as it looks. You can still claim the rent amount as a deduction and save taxes,” her landlord replied.
“Seriously? If I don’t get HRA, how can I claim rent against my income?” Trupti asked excitedly.
Are you also an entrepreneur, a freelancer or a job-doer who is paying rent for accommodation but not getting house rent allowance?
This article will help you immensely if you live in India. I will tell you about the section 80GG under which you can claim house rent as a deduction and save your taxes.
Section 80GG is applicable to you if you’re self-employed (entrepreneur or freelancer) or a salaried employee who doesn’t receive HRA, and you’re paying house rent.
You’re eligible to claim the lowest of:
Net Total Income = Total Income minus Income at special rates minus deductions under 80C to 80U (excluding deduction under section 80GG).
You’ve to file Form 10BA and mention complete details of the landlord, address, and rent paid during the year.
You don’t have to submit rent receipts along with ITR. However, you should keep them in safe custody. You may be required to submit them at a later stage if the Income Tax Department calls for a detailed scrutiny or investigation.
Section 80GG can help you reduce your income by at least Rs 60,000 a year (subject to actual rent). If your income falls in 20% tax slab, you can save up to Rs 12,000 through this section.
However, there are certain other clauses associated with this section that can help you save taxes legally.
Thanks for the tips
Very useful....thanks Hardik...
I don't live in India but that was helpful
Leave your comments
Post comment as a guest