Does HRA comes under 80C Section?” So many people have this query. In this answer, I will explain everything related to Section 80C and HRA clearly.
Section 80C of the Income Tax Act is a very popular and arguably a favorite section amongst the taxpayers. This is because this section lets you reduce taxable income by any incurring eligible expense or making a tax-saving investment. It allows a maximum deduction of Rs.1,50,000 yearly from the total income of a taxpayer.
HUFs and Individuals can take the advantage of this deduction whereas LLPs, partnership firms, and companies can’t take the advantage of this deduction.
Section 80C contains subsections 80CCD(2), 80CCD(1b), 80CCD(1), and 80CCC.
I want you to know that the overall limit including the subsections to claim the deduction is Rs. 1,50,000 except an additional deduction of Rs. 50000 allowed under section 80CCD (1b).
So, is HRA part of 80C?HRA is exempted from taxes under Section 10 (13A) and not under Section 80C.
The amount that is exempted from tax is the least of these three:
A) 50 percent of (Basic salary + Dearness Allowance) in case the individual is staying in Chennai, Delhi, Kolkata, or Mumbai, otherwise, it’s 40 percent.
B) Actual House Rent Allowance received
C) Total Rent paid – 10 percent of (Basic salary + Dearness Allowance)
Hope it cleared all your doubt related to the “does house rent comes under 80C” query.
Find out HRA comes under which section How to calculate HRA in Income Tax Check out how you can claim HRA for own house Read whether you can pay rent to my parents and claim HRA
Does HRA comes under 80C?
Madhav
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2021-09-28T17:04:14+00:00 2021-09-29T17:59:54+00:00Comment
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