Save money, Save time

paisa bazar

Watch till the end for my fav dad joke! 🤌🏼

Anyway, are you a salaried employee staying with your parents in a house that they own? 🙌🏼
And you don’t co-own? 🙌🏼

I have news for you! 📰
You can pay them rent and claim the house rent allowance (HRA) exemption offered by your employer.🌟

This works best if your parents are in a lower tax bracket than you! 🙏🏼

While this amount is taxable in their hands, they can claim a deduction of 30% on the annual rent for repairs and maintenance under Section 24 of the income tax act. 🤌🏼

Note that if the rent is above Rs 1 lakh a year, their PAN card details will also have to be shared.🙌🏼

The deduction amount will be lower of the:
- Actual rent paid minus 10% of your basic salary
- Total HRA that the employer provides you
- 40-50% of basic salary depending on residential conditions

So bottom line?👇🏼
PAY RENT TO YOUR PARENTS AND SAVE TAXES!🌱
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#HRA, #TaxTips #taxation #House #Rent #ShreyaaKapoor, #personalfinancetips #taxes #Money #MoneyMatters #HipiMoney #HipiFinance #HipiFunds 
#FinancialTips #HipiFinance #FinanceonHipi
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