How much Rent we can show for saving Income Tax, Are there is any limitation in Income Tax Act. In my company 1 person showing Rs.9500/-Rent for House in Village area. Please advice.
13 August 2009
As it is there is no limit in income tax act for rental amount.
If one is paying the rent, then should show actual paid else in order to claim the HRA benefit, show rent which seems justified according to the area and should also mention the same in Rent receipts and rent agreement.
14 August 2009
if he will give u rent agreement and rent slip u have to except it and in this case he will get the exemption lower of actual paid, 40 % of basic and 10% rent paid over the basic salary
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