2 min read.Updated: 15 Jul 2021, 01:42 AM ISTRenu Yadav
Income Tax Act 1961 provides for employees to claim deduction against house rent paid, even if HRA is not part of their salaries
NEW DELHI : For most employees, house rent allowance (HRA) is part of their salary income. However, some small, and medium-sized companies may give a lump sum amount to the employees without any break-up. For an employee staying on rent, to claim deduction, HRA should be part of his or her salary income. However, Income Tax Act 1961 does provide for employees to claim deduction against house rent paid, even if HRA is not part of their salaries. Such employees can claim deduction against the house rent paid under Section 80GG of the Income Tax Act. The rules also apply to self-employed people. Let us understand the limit and the conditions under which one will be able to claim tax deduction under Section 80GG.
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