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Tax queries

Sakitram (NA) (189 Points)

29 July 2011

Hi,

I have some queries regarding Income Tax.
Please someone clarify my doubts.

- What is the maximum HRA amount is allowed for tax exemption?
- While submitting signed ITR-V to the Tax dept. after ITR esubmission, do we need to attach any other documents with it (such as rent receipts, rent agreement, LIC payments, medical bills, etc)?
- I want to do Tax savings by paying only one time (such as fixed deposit), could you please suggest any idea regarding that.
- I have some medical diagnosis bills and medicine bills, can I use it for tax saving under any section? Or I had to submit it to the Medical insurance company to reimbursement only? If it is reimbursed, is it taxable amount?

Thanks for your time and consideration.

Regards,
Sakitram

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2 Replies

Dilip Kumar Agarwal (A) (128 Points)
Replied 29 July 2011

1.Exempted portion of HRA receipt is least of followings :

-40%/50% (50% in case of defined cities) of salary (salary defined)

-actual HRA Recd.

-excess of rent paid over 10% of salary

2. While submitting ITR-V no enclosure, whatsoever is required.

3. If yoyu take reimbursement against these bills from your employer (assuming you have salary income), such reimbursement to the extent of Rs. 15000/- is exempted.

Thanks

CA Dilip Kumar Agarwal

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Sakitram (NA) (189 Points)
Replied 29 July 2011

1. I am living in Bangalore. What's the meaning of salary here? Is about the total income (ie. including taxable income) or just the take home?

In our company, we decide the HRA amount from a Flexible Benific component.

excess of rent paid over 10% of salary

I could not understand this point.

2. If we do not have to send anything attached with the signed ITR-V, how the IT dept. will the proof of our investments that we claim in ITR. Or it could be possible, as we send these investment proofs to our company every year, so they might send this copy to IT.

3. If I suppose do not send the medical expenses from my company, will get any benefit from IT for this.

I mean, can I reduce this medical expense amount from the Taxable income as a benefit to me?

Thanks