TAX RELAXATION CAN BE GET IF (BASIC+DA)*1.2<30000 THEN HOUSE RENT IN ONE YEAR MINUS THE AFORESAID AMOUNT IS RELAXED IN TAX WITHOUT SUBMISSION OF RENT BILL. IS IT TRUE? WHAT IS THE g.o......
I dont think so.
Say, you reside in a rented house, of which the rent paid is Rs. 4000/- per month i.e. Rs. 48,000/- annually.
Say, your (Basic + DA + Special Allowance + other allowance e.g. NPP) = 2,00,000/- annual.
and say, you receive HRA in a year is Rs. 24,000/-
The minimum of the following amounts shall be Rs. 28,000/-
1. HRA received = Rs. 48,000/-
2. House Rent Paid – 10% of (Basic + DA + Special Allowance + other allowance e.g. NPP) = Rs. 48,000 – Rs. 20,000 = Rs. 28,000/-
3. 40% or 50% of (Basic + DA + Special Allowance + other allowance e.g. NPP) = 1,00,000/-
So, while calculating I.Tax an amount of Rs. 28,000 will be deducted from your gross salary.
The above calculation is based on rule 10(13A) of Income Tax Act. To get this exemption rent receipt must be submitted.
