Shreyaa Kapoor Instagram – Watch till the end for my fav dad joke! 🤌🏼
Anyway, are you a salaried employee staying with your parents in a house that they own? 🙌🏼
And you don’t co-own? 🙌🏼
I have news for you! 📰
You can pay them rent and claim the house rent allowance (HRA) exemption offered by your employer.🌟
This works best if your parents are in a lower tax bracket than you! 🙏🏼
While this amount is taxable in their hands, they can claim a deduction of 30% on the annual rent for repairs and maintenance under Section 24 of the income tax act. 🤌🏼
Note that if the rent is above Rs 1 lakh a year, their PAN card details will also have to be shared.🙌🏼
The deduction amount will be lower of the:
– Actual rent paid minus 10% of your basic salary
– Total HRA that the employer provides you
– 40-50% of basic salary depending on residential conditions
So bottom line?👇🏼
PAY RENT TO YOUR PARENTS AND SAVE TAXES!🌱
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[HRA, tax tips, taxation, house rent allowance, Shreyaa Kapoor, personal finance tips, taxes] | Posted on 18/Jan/2024 20:00:21
