Tax saving tips from rent agreement

It is important to keep in mind 5 things while making Rent Agreement to save tax. Without this, it is difficult to save tax while filing ITR. Are you also a salaried employee? In such a situation, you can claim HRA by giving a rent agreement. Let us tell you that you cannot use Rent Agreement to save tax in the new tax system. Its advantage lies only in the old tax regime.

To save tax, you will get benefit from Rent Agreement

Rent Agreement is made to save tax. There are 5 points in these which need to be added. House Rent Allowance (HRA) is claimed as per section 10(13A) of the Income Tax Act. How much money can be saved through this depends on many other circumstances apart from the Rent Agreement. First of all, check in the salary slip that how much money you are getting under HRA. Tax saving is done by deducting about 40% of the salary in the city and 10% from the salary on the rented house.

Add Monthly Rent to Rent Agreement to Save Tax

To save tax, make sure to include the monthly rent while making the Rent Agreement. Generally, people register the rent according to the year or 11 months. In such a situation, to save tax, we divide it month-wise by looking at the Rent Agreement.

Please enter the Rent Agreement deadline to save tax

To save tax, get the time limit added while making the Rent Agreement. That is, for how many months or years you have been living in a house on rent, it is necessary to give information about it. Usually people get a rent agreement made for 11 months. After this it can be made again.

Include additional expenses in the Rent Agreement to save tax

Often people do not include other expenses while making Rent Agreement to save tax. If you put something separately in the rented house on which you have to spend thousands of rupees, definitely include it in the Rent Agreement.

Get the Rent Agreement made on this stamp paper to save tax

To save tax, get the Rent Agreement made only on a stamp paper of Rs 100 or Rs 200. Alka It is mandatory to give PAN card and Aadhaar card of the landlord if the rent is more than Rs 100000. On the other hand, if you earn more than Rs 5000000 per year, then fill Form No. 1. It is necessary to have the signature of the landlord on all the pages in the Rent Agreement.

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