Just imagine a situation where you want to save your tax, but you don’t have any idea that your rented house could help you save tax. Well, better late than never, save your tax now. With individuals who are working on salary always wish to save their tax and for them, rent receipt is a blessing. In a country like India, where receipts for any services rendered or product purchased plays a significant role, it’s always recommended to ask for a rent receipt from your landlord is a must.
As you are a salaried professional therefore receiving House Rent Allowance (HRA) over INR 3000, makes it an obligation to have rent receipts. It might be a possibility that your employer can ask on a quarterly or yearly basis for the rent receipts. Though, you may also offer receipts every month, depending on the rules of the company you work for.
We have jotted down a few vital things that will help you in saving income tax.
When you file for income tax then you can claim HRA exemption as you are a salaried employee. Note down how you can claim HRA exemption when filing ITR.
1. You have to calculate the HRA exemption amount.
2. Deduct the exempted sum under the head salary from the income chargeable. This part has been mentioned in your form 16, column 6 Part B.
3. You have to enter the amount calculated earlier in step 2 under income from the salary.
Now, you must be thinking that is there any possibility to claim HRA deduction if it is not stated as a component of salary? Well, the good news for you is that as per section 80GG of the Income Tax Act, 1961, if you do not receive HRA, you can even claim a deduction if you are paying rent.
Similarly, if you are working from home and wish to claim a tax deduction for the purpose of business then processing rent receipts can help you a lot.
So many benefits always come with some hurdles. What if your landlord refuses to give you the rent receipt? What if your landlord refuses to sign the receipt prepared by you? There will be plenty of problems and the solution is only one RentScribe.
Rent a house from RentScribe and the worry of asking or reminding your landlord for the rent receipt vanishes. RentScribe will take the hefty burden and every month will provide you the rent receipt. Problem solved. So, register with RentScribe and save your tax.
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