Is PG Rent Tax Free?

No, PG rent is not tax free. Here are the details about

GST on PG

. It's important to note that you can claim House Rent Allowance (HRA) against your PG rent. However, for this deduction, you will need a receipt from your landlord containing their PAN number.

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How to Generate e Way Bill without GST Number

 

After staying in a PG for 3 years, I’d say that you can claim HRA against your PG rent. However, you will need a receipt from your landlord stating his PAN No. For the people who are wondering, how much is the GST on paying guest accommodation, I’d say that 12% has been levied on renting accommodations for hotels /inns /guesthouses, and so on.

It is crucial that your name be on the lease or leave and licence agreement for the apartment. Without it, you won't be able to deduct the rent you paid from your taxes.

Whether you receive a house rent allowance (HRA) from your employer or not, you must meet these criteria in order to deduct rent from your income for tax purposes under section 80GG.

You can learn more about the house rent allowance tax exemption available to salaried people living in rented housing under Section 10(13A) of the Income Tax Act, 1961.

A rental receipt must be provided as proof in order to receive HRA tax relief. The PG rent receipt can be used for tax computation since PG rent is paid to a landlord in exchange for shared living quarters.

if you share housing with your family and they own a PG. You can pay your parents or other family members' rent and provide rental receipts from PG to qualify for the HRA exemption on your yearly income tax return.

Regarding the PG in taxation, I’d say that you will be unable to claim the deduction for rent if you are residing in a PG and making a single payment that includes both your rent and meals. Be sure to separate the payments.

You require the landlord's Permanent Account Number (PAN) if your annual rent payment exceeds one lakh rupees in order to be eligible for a deduction. In such a circumstance, your employer will also need the PAN for tax withheld at source (TDS).

I’d like to conclude my answer here about the GST on paying guest accommodation. I hope this helps:)

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