Rent paid
This query is : Resolved
17 February 2012
Dear sir
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.
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.
Total Salary 228000
Deduction 11940+4800=16740
Total Income 211260
Tax payable 3126
Educational Cess 94.
Total tax Liability 3220.
.
For current year's income AY 2012-13 rates are applicable.
Total Salary 228000
Deduction 11940+4800=16740
Total Income 211260
Tax payable 3126
Educational Cess 94.
Total tax Liability 3220.
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
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
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Confusion around Form 26QB fields
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Disallowance of Section 43B(h) to sez units
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- GST Regis.
- Sale of property furniture sale
- Is correct way to find out capital of individual on 31st March
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
