Refuting reports that there is a special drive by the department to reopen cases regarding House Rent Allowance (HRA), the Central Board of Direct Taxes (CBDT) said the verification of rent paid by the tenant and the rent received by the recipient was done in a "small number" of cases.
With the start of the new financial year, companies are reaching out to their employees to select the tax regime for 2024-25. This is an important decision because you can do it only once in a financial year. Once you make a choice, your income will be taxed as per the tax structure of that regime
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
Income tax rules from April 1 for FY 2024-25 (AY 2025-26): The new financial years starts from April 1. It is important to know the correct income tax rules for every financial year so that an individual can do the tax planning for the same accordingly, make tax-saving investments for the current financial year. Read on to know the income tax ready reckoner for financial year 2024-25.
HRA tax exemption documents, proofs: House Rent Allowance (HRA) is generally part of an individual's salary structure. To save tax on rent paid during the financial year, an individual can claim exemption on HRA. However, an individual must have certain proofs apart from paying rent to claim HRA exemption and avoid rejection from the income tax department.
Tax deducted at source (TDS): While it is important to deduct a correct amount of TDS in certain transactions, it is also important to check the status of the deductee's PAN. If the TDS deductor does not check the status of PAN of the deductee on the date of TDS deduction then all the penalty and other legal repercussions would be applied to him and nobody else.
HRA tax fraud: The investigation by the tax department began when authorities stumbled upon purported rent receipts totaling approximately Rs 1 crore under an individual's PAN. However, upon questioning, the individual disavowed any knowledge of these transactions. Subsequent inquiry revealed that the individual had not actually received the rent attributed to them.
Documents for HRA tax exemption: To claim HRA from their employers, many salaried employees usually use either rent receipts or rent agreement as proof of the rent paid in a financial year. However, tax experts point out that assessing officer of the income tax department can reject HRA tax exemption claim if any one of the documentary evidence is missing.
Gupta can reduce his tax by more than Rs.83,000 if he claims HRA exemption by paying rent to his father, if his company offers him the NPS benefit, and he invests more in the scheme on his own. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
Though under the new tax regime you may end up paying no tax on income up to Rs 7.5 lakh and and pay tax at a lower rate when your income goes higher, but old tax regime offers higher tax saving opportunities with various deductions and exemptions. However, these deduction can not be claimed by all taxpayers and apply on only select individuals. Hence, it makes sense for you to check which tax regime will help you save higher tax.
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High rents in the U.S. disproportionately affect immigrants, hindering their access to education and healthcare. Nashville faces rent challenges due to gentrification and lack of affordable housing. Immigrants play a crucial role in the economy, emphasizing the need for housing support.
Income tax department: March 29, 2024 is Good Friday, a holiday and March 30 is a Saturday. Further March 31 is a sunday. In light of the financial year 2023-24 ending on March 31, 2024, the income tax department has cancelled the holiday and said that its office will be open on all three days.
The tax-saving investments of an individual should be part of his overall financial plan. Poor financial habits and biased advice push taxpayers to make sub-optimal investment decisions. Here are some mistakes they must avoid in the rush to beat the 31 March deadline.
One of the easiest ways to save tax is to avail tax deductions under section 80C. Each fiscal year presents an opportunity to reduce your taxable income by up to Rs. 1.5 lakh through Section 80C deductions. These deductions are accessible to both individuals and HUFs.
Tax Deducted At Source (TDS): TDS is levied on many types of incomes like salary, house rent, virtual digital assets (VDA), etc. What is important to note here is that a correct amount of TDS should be deducted and TDS return (if applicable) is filed in time. Read here to know some TDS rates for FY 2024-25.
Srishti, an NRI, discovered INR 20,000 TDS on her NRO account. Does she need to pay tax in India? Is filing income tax return mandatory? Explore tax-saving instruments, tax-exempt proceeds, and financial compliance.
Mumbai's property market had its best February ever with over 12,000 property registrations, up 24% YoY. Revenue collection declined due to high stamp duty collections. Demand and sales remained strong. Mumbai has climbed to the 8th position in the global luxury real estate market.
To qualify for tax benefit on HRA, the individual should be a salaried employee, should reside in a rented accommodation and pay rent. Here are the key considerations and provisions with respect to HRA and the implications from tax perspective.
The tax department is seeking details of Legal Entity Identifier (LEI); any contributions made to political parties, including the date and mode of payment; and information on any deductions claimed for the maintenance, including medical treatment, of a dependent who is a person with disability.
Affordable housing in interim budget 2024: According to the Finance Minister budget speech, the government will announce a new scheme for middle class to build or buy their own houses. The new scheme will help the middle class living in rented houses, or slums, or chawls and unauthorized colonies to own a house.
House rent: A landlord might be inclined to charge an higher rental for his/her furnished flat as tenants prefer to stay hassle free and in an homely environment with all the amenities. Experts suggest that a landlord create two separate rent agreement-one for the house rent and another for the rent for furnishings- bed, geyser, mattress, etc.
The house rent allowance (HRA) is one of the common component in the salary structure of an employee. However, not all employees get similar benefit due to difference in the place of residence. The HRA rules allow 50% exemption for metro cities and 40% for non-metro cities. There is a need to amend definition of metro cities under the Income-tax Act.
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