Rent deke Tax save hua #tax #finance #education

Tax benefit under: Section 10(13A)

🔸If you are a salaried employee staying with your parents in a house that they own and you don’t co-own, you can pay them rent and claim the house rent allowance (HRA) exemption offered by your employer.

This will help if your parents fall in the tax-exempt income limit or a lower tax bracket than you do. While this amount is taxable in their hands, they can claim a deduction of 30% of the annual rent for repairs and maintenance under Section 24.

*Note that if the rent is above Rs 1 lakh a year, their PAN card details will have to be shared.

➡️Documents required to claim the HRA while staying with parents

🔸Rent agreement and rent receipts - Usually employers ask for a copy of the rental agreement for their records.

🔸You can enter into a simple rent agreement with your parents.

🔸You can prepare rent receipts by using any Receipt generator websites. eg. Cleartax.

🔸You can print these receipts and submit them to your HR/payroll department.

Source: ClearTax, Economic Times
.
.
.
.
.
.
.
#tax #savetax #rent #moneymanagement #financialeducation #savemoney