How your Rental Expenses can help you save tax

House Rent Allowance - Section 10 (13A) & Rule 2A

Exemption u/s 10 (13A)

Points to ponder....

1.Exemption is calculated based on your place of accommodation

2.In case of change of place of employment, HRA is calculated on a monthly basis

3.Exemption is calculated only for the period for which accommodation is provided.

4.Salary for the period for which rental accommodation is not provided is ignored

5.HRA can be claimed by the assessee only for the house occupied by the assessee for the purpose of employment

Deduction for Rent paid - Section 80GG & Rule 11 B

Deduction u/s 80GG

Least of the following:

1. Rent paid Less 10% of your adjusted total income

2. INR 5,000 per month

3. 25% of Adjusted Total Income

Points to ponder...

1. Accommodation to be occupied by the assessee for own residence

2. Assessee to file self declaration in Form 10BA declaring details of rent

3. All deductions to be considered to compute qualifying amount u/s 80GG