October 4, 2022

Sometimes, home lease allowance (HRA) is a part of staff’ wage package deal. It’s exempt from tax, topic to sure circumstances. However, what in case your employer doesn’t supply HRA or in case you are self-employed? Then, revenue tax guidelines supply aid by part 80GG. On lease paid, you’ll be able to declare deduction of as much as Rs 5,000 a month, 25 p.c of your complete revenue or precise lease paid minus 10 p.c of complete revenue, whichever is decrease. Nonetheless, you’ll not qualify for this concession in case your partner, minor little one or your Hindu Undivided Household (HUF) – in case you might be a part of one – owns a home within the place the place you often keep.

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