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HRA: How is it calculated, and more

April 9, 2009

It is the beginning of yet another financial year. Although the words ‘income tax’ start ringing a frantic bell towards the end of every financial year, the wise planner will have things sorted out when the year begins in April.

There are many tax components you need to be clear about and also figure out how to plan your investments to gain maximum returns as well as maximum tax benefits. One such tax component is the tax benefit you can claim from your house rent allowance.

HRA (house rent allowance) is provided to salaried people under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules.

Self-employed professionals are eligible for tax deductions under section 80GG of Income Tax Act, 1961. Find out how HRA is calculated and more. . .

Text: Abitha Deepak, BankBazaar.com

Also read: Shocker! Tax refunds being diverted to fake accounts

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