I have paid rent @3000/- per month Rs 36000/- for the f.y 2010-11. but i have not recd any H R A on salary. My salary is 19000/- per month in Faridabad. is the amt of Rent is delectable under any section of Income tax. Pl. calculate my tax. I have LIC receipt Rs 11940/- Tution fees paid for children 400 P.mx12=4800.
17 February 2012
Actually rent is not deductible. If you get HRA, then certain part of it is exempt, when you pay rent towards the accommodation. . For current year's income AY 2012-13 rates are applicable.
17 February 2012
I am sorry to say that Mr Bafna have said only part of the exemption regarding rent deduction. There is one section 80GG which give benefit to those person who do not receive HRA in their salary. The section says that any expenditure incurred by assessee on paymnet o rent in respect of any furnished or unfurnished accommodation in excess of 10% of his total income before making any deduction under this section the Lower of the following three will be allowed as deduction from his total income. 1. Rs 2000 per month or 2. 25 % of total income after allowing deduction under chapter VI A except this section 3. Expenditure incurred in excess of 10% of the total income after allowing deduction under chapter VI A except this section. Hence your calculation goes like this Total Salary 19000*12 = 2228000 Total Rent paid 3000*12 = 36000 LIC = 11940 Tution Fees = 4800 Hence deduction under Sec 80GG will be lower of following 1. Rs. 2000 pm that is Rs24000 or 2. 25% of total income 25%(228000-11940-4800) = 52815 or 3. 36000-10%(228000-11940-4800) = 14874 Hence deduction under sec 80GG will be 14874
Now tax calculation Total income 228000 Deduction under 80C LIC 11940 Tution Fees 4800 Deduction under Sec 80GG = 14874 Taxable Income = 228000-11940-4800-14874 = 196386 Less Basic Exemption limit = 180000 Hence Net Taxable Income 196386-180000 = 16386 Tx on it @ 10% = 1639 Edu Cess @ 3 % on 1639 = 49.17 Hence total Tax laibility = 1639+49 =1688
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