House Rent Allowance
— A portion of your salary is marked as House Rent Allowance or HRA
— You are paying rent of your house
–The house should not be in your kids, spouses or your own name.
–The total amount of rent paid or the amount earmarked as House Rent Allowance in your payslip, whichever is less, will be deducted from your taxable income.
–It should not be more than 50 percent of salary for those living in metro cities or 40 percent of salary for others
–If you are paying more than Rs.5000 per month as house rent, you will have to submit a lease document
–Rent receipts should have a revenue stamp.
–You have taken an Education Loan from any bank
–The loan should be in your kids, spouses or your own name.
–Only principle repayment can be exempt
–The interest that you pay will be tax deductable.
According to Income Tax Act,1961 there is a provision benefit in Income Tax if assessee has an income as a dividend on investment in any of the following:
–Unit of UTI
This dividend can be given by any company or co-operative society.