One more thing in calculation is if he is earning 1 lakh then he will have a car & 15 k needs to be deducted from 39 k. He will have 25 k. And then in 25 k he has to run his home, children education & other things.
I have a confusion. Pls clarify ! I have a home at my native and I am paying home loan on it for which I claim deductions etc however I am living in rented accomodation at my place of work and that is reimbursed by my employer which is not part of my gross and not shown in my form 16. Now can I claim HRA deduction Considering My basic is 58k Reimbursed rent : 7k Actual rent paid is: 9.5 k Also will I have to add reimbursement of rent in my gross ( for tax calculation) if I have to claim HRA ? Currently I don't calim HRA neither I show reimbursed amount in my salary
I was not expecting this! I am glad that you also watch LLA video and appreciate their work by leaving a comment. #Legend_Found_In_Comment #LoveFromAssam
Fantastic to see that you have so many jagruk janta ready to rectify some mistakes that may have been made, give constructive criticisms, and the LLA team reads the comments and engages with the community!
sir ye video dekh ke mujhe laga pehli baar ki mein apne jivan mein kuch important miss kar rha tha aur time waste kar rha tha in youtube for the first time i am speechless!
@@LalitPatilcasper Logo ko dikhane ke liye nahi lena hai Genuine need ha to. 2 bhk is max . You can buy bigger in future And yes kuch log sirf dikhane ke liye lete hai . 30 saal main ghar le liya , jisme 80% to loan hi hai My study: if you invest heavily in 30 . You can buy 3 times bigger the house in 40s . And that also in cash Tax save ke chhakar main debt lena not at all advisable
@@raghavbhatnagar551 parag Parekh long term equity flexi , sbi focused equity, hdfc nifty 50 index funds Star learning online. Then invest in direct equity & midcap & small cap
Really appreciate you uploading your videos in a language that a majority of the general public will understand. Thank you for making financial literacy available to all! Kudos! ^_^
The current home loan rent is around 7%, it is nowhere close to 10.5% That being said Home loan amount is always 35-40L on the lower end even in Tier 2 city so the calculation seems fair.
One more info regarding deduction on interest from FD - Under 80TTA, upto 10,000 can be claimed by anyone from Savings interest earned. But under 80TTB, senior citizens (>60yrs) can claim 50,000 from Savings as well as FD interest. Guess this was the source of confusion in the previous video. Also guys plz add commas after thousand and lakhs in large numbers, so one is able to grasp the total easily. 10,00,000 is easily recognised as 10 lakhs than 1000000 is.
As per my past 3 employers, HRA can be 40% of basic for non-metro and 50% for metro. So, for 12 lakh income, basic would be 6 lakh and HRA would be maximum 2.4 lakh
6 lakh is the actual HRA received from your employer. It has no dependency on your basic. While what you are talking about is one of the way HRA exemption is calculated. You can google about how to calculate HRA exemption to get this.
@@AnuragRoy17 HRA is minimum of: 1)Actual HRA received from employer 2)For those living in metro cities: 50% of (Basic salary + Dearness allowance) For those living in non-metro cities: 40% of (Basic salary + Dearness allowance) 3)Actual rent paid minus 10% of (Basic salary + Dearness allowance) Read point 2, it is dependent on basic. It can't be more than 40% of basic for non-metro cities. Hypothetically, if one's basic is 8 lakh, then HRA can be max 3.2 lakh. For 6 lakh HRA, you need 15 lakh basic, and 6+15 has to be less than 12.
Firstly thank you very much.. simple yet very helpful content, but one question : Without taking a home loan is there any way to have 0 tax applicable with any other type of investment under any other sections?
Nice Video. 1 point here. So most of the private jobs have the employer PF contribution in the Gross Salary itself. So what u will get in hand here is (12,00,000 - 1,20,000{employee contribution} -1,20,000{employer contribution} = 9,60,000) . So, the real in-hand after all investments will be 3,50,000 in this case which is approx 30,000 INR, which is also sufficient.
Tax calculated from gross income - 1.5L(total in 80C) of pf or anything else in 80C. So, nothing more can be added there in 80C like life insurance installments, tution fees, tax benifit schemes etc.
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How can you put HRA for 3L? It is least of following 3- 1) 40% of Basic 2) Actual HRA 3) Rent - 10% Basic with any amount of basic and hra component of salary structure, its comes out to be 2.5 L Max.
Should be ~2-2.5 atleast. The limit hasnt changed in ages it seems. But it is highly unlikely that'll happen in the distant future. Given Corporate taxes have reduced to 25% entire deficit will have to be borne by other type of taxpayers
My company calculates based on below 3 points and the least amount among the above mentioned 3 criteria will be considered for the HRA tax exemption. 1. 40% or 50% (depends upon Non-metro and Metro cities respectively) of annual basic salary 2. HRA declared as a part of salary * (into) 12 3.Actual annual rent paid to landlord - (minus) 10% of annual basic salary. In this way I cannot claim much on HRA as my monthly basic salary is 38100INR per month.
Thanks for your efforts. Your channel, am sure, is a great learning tool. Fyi, employer's PF contribution in excess of 12% of salary is a taxable income for the employee.
Please make a video on tax saving for government employees who do not have an option of varible HRA. Everything is fixed according to government rules.
For HRA exemption, the least of the following three will be taken to exempt from tax: 1. HRA received from your employer. 2. Actual rent paid minus 10% of salary. 3. 50% /40% of basic salary for those living in metro / non metro cities The HRA calculation shown in the video is incorrect. Please correct anyone if I am mistaken here
Sir which one will give more returns in long term 1. Buying home loans to save tax or 2. Paying tax and Investing that same amount of money(EMI) in some assets which will give min. 15% returns annually
Also don't forget if you are building a house of your own. Then the raw materials are in 18% of GST slab. Some of them are even higher i.e. 28%. So I don't think one should take home loan to buy or build q house. Go for second one
The idea is to become tax efficient in case you have expenses which are exempted. Not that you need to spend to save taxes. Becoming debt free is the first step to become financially independent. The focus should be to pay 0% interest. Investing is the only way forward to become prosperous.
HRA examption is not given on the actual rent paid. There is a rule for hra exemption. It depends on the place of your rented accomodation. You cannot give the exemption of entire 3.6lacs in your example.
In IT we can only claim Mobile and Internet bill for other items they will give you advance even car too if you are going to visit client location. That car is Mercedes Benz 😂
The presentation was simply superb. The example that you gave for 12L gross income in which 6L as basic component and 6L as HRA. As per my knowledge and understanding the HRA component cannot be more than 50% of Basic component then as per the calculation the maximum HRA component cannot exceed 3L per annum. Please correct me if I am wrong.
@@cutieandsweetievlogs2475 yeah but the illustrations must have something to correlate, as taking actual illustrations will gonna help people like us Furthermore why & how one can claim HRA as well as 80C benefits on the principal loan paid amount, this is ok to an extent if you're having a loan for under construction building but I doubt until then one gets loan so any which we need to declare of getting rent from either of the property
My income from salary 7lakh. And exmpteion and deduction 250000. Taxable income 450000. Condition 1. Short term capital gain rs 55000 Condition 2. Short term capital gain 30000 Condition 3. Long term capital gain 40000 Condition 4. Long term capital gain 70000 Please provide tax calculation according these all conditions.
Just one correction- HRA component is 50% of basic and not of the gross salary.. So yaha par chahkar bhi u can't have 6lakhs as HRA..it will be around 3lakhs. Just going with your exampls
That's what he deducted as exemption from the Gross income. 13:21 Exemption for HRA is limited to 50% of basic pay. In this case it is 3 Lakhs. That's what he deducted from Gross income.
@@LabourLawAdvisor I agree that the exemption comes to 3lakhs but even with the new wage code, the fact that the HRA component of the salary structure has to be 50% or 40% of the basic does not change. All i meant to say is even with the new wage code wd don't have the liberty to blanket 50 percent of our remaining gross just under HRA
@@borealis312 yes he deducted and thats because the rent paid was 30k..Try if the rent was 25k.. I concern was not the HRA exemption but the HRA component in the salary structure
Good content!! When you are considering HRA and Home loan together, it does mean that the owned home is let out for rent because no one will keep a house vacate. So in that case what will happen to amount which is earned from Rent. I believe that gets set off with your interest. So in this case there are chances that the net taxable income goes above 5L. Can you please throw some lights on this.
For that purpose, if you own the house in the state other than the state you are employed in, such house shall be considered as self occupied property and rental income shall be considered to be nil.
Sir LTCG पर 10% टैक्स है । उदाहरण के लिए मानिए 2015 से हमने एक Mutual Fund में पैसा डालना शुरू किया आज हम उसे Redeem करते है Value 9 लाख हो गयी ( 5 लाख principal- 4 लाख प्रॉफिट). और आज की सालाना सैलरी 6 लाख है। इस केस में हम कैसे tax बचा सकते है....? ये पैसा और भी ज्यादा होगा उनके लिए जो retirement के करीब होंगे।
12:30 I think that assumption may not be correct. I was earning a lot more than the example given and was paying 10k rent in Hyderabad. Which is around the same for everyone else in my team
HRA ki guidelines h a. Actual HRA received b. Actual rent paid-10% of Salary c. 40%/50% of salary HRA Exempt (Minimum of a,b,c) Govt employees ko 8% ,16%, 24% hi HRA milta h wo bhi city wise... Toh ese me wo Maximum HRA kse exempt kr skte h...??? Kya wo is minimum of a, b, c ko chod kr actual Rent paid se exemption le skte h kya...ITR filling k bad koi problem na ho ua koi letter na aa jaye...Plz clarify it Please reply
@@vijay_madhukar Reality me itna HRA milta hi kha h... HRA basic pe depend hota h...or basic normally 20k-40k hi hota h... Upr se basic ka 8%, 16%, 24%... Toh ese me jyda exemption milna easy nhi
@@caprashantwadhwani3684 kyi log ITR me jitna rent paid kiye h....utna fill kr dete h like HRA milta 25k p.a. hai or fill 1 lac tk kr dete h...toh ese me Income Tax Dept ka letter mil skta h kya unhe????? Kyi CA ke agent bhi kehte h bhar do...kuch nhi hoga... tumne rent to bhra hi h
@@rnvjrv Sir I am also a CA but a bit risk averse. Yes notice aa skta hai, chances although kam ho but fir bhi aa skta hai. Have seen practically where one friend claimed fake deductions u/s 80c and got the notice from department
Correct me if i am wrong! PPf/pf/nps - 1.5 lakh (80c) Nps - 50k(80ccd2) Nps/vpf (employer contribution) - upto 10% of basic ( 80ccd1b) (lets say 50k) Hra - 3 lakh So, according to above, i guess i am eligible of deduction of amount 5.5 lakh?
Awesome work. I have discovered your channel recently and watched almost all videos. I have few questions and would like to understand in detail about the PF contribution part. 1. Employer Contribution to PF - Is this not considered as Income from Salary? My understanding so far was Employee contribution and Employer contribution both are taxable but can be considered under 80C upto a total of 1.5 Lakhs. 2. How does VPF play a role here? Is VPF completely taxable or can be considered under 80C or not? . 3. Which option according to you is the best? A. 12% basic Employee contribution (>=2.5L) + 12% basic Employer contribution (>=2.5L) Note : Keeping it greater than 2.5L, as new rule says interest earned above 2.5 L PF is taxable. B. 1800 pm/21600 rs pa ( Employee Contribution) + 1800pm/21600pa( Employer Contribution) + VPF (2.2 L) C. PF opted out (0 Employer/Employee contribution) + 5 L (VPF) Assumption: Employer is in favor of Employee and can opt for any of the above approaches. Let's assume, if you are opting for option B or C, the rest employer contribution (which employer would have given in Option A) will come as a taxable component of your salary (i.e. for understanding purposes, let's consider you are not losing any money if you opt for other options other than A)
I use to live in a flat with my roommate Rent of flat = 20,000 Individual contribution =10,000 So i can show HRA as complete 20,000 * 12 = 2,40,000 Or only 10,000 * 12 = 1,20,000 ? Also we have have a registered rent agreement.
Hello sir Do I need rent agreement while paying rent to parents? I am already transferring money every month from my account to my father's account and have also generated a rent receipt (with relevant details) from some site online. Do I still need a rent agreement?
I am also curious about same thing I live in my home town I am going to vacate Bangalore's rented flat, from next month onwards I am going to pay rent amount to my parents(since my parents are owner & aged above 60 as well and my Bangalore's stuff required at least 1 room). I am going to generate rent agreement through online site since pandemic lockdown still going on at my location. Monthly I will pay to my parents. Will generate receipt and claim to my company. Is it legal @rishabh please suggest on this
Yes. You need to submit your rental agreement and rent receipts(At least they ask to submit them in my company). It costs very little money to create a rental agreement(like max 50rs) offline by visiting government office. You can also get it online, but need to pay like 500rs to get it delivered to your home. I would also suggest you do income tax declaration for your father too. If the total income for your father is less than 5L(including income from rent), then you don't need to pay tax for him too.
I think it's perfectly legal to stay at your parent's house and pay the rent, provided the money paid is duly acknowledged in your parent's income as income from property, and you yourself don't own a house in the same city. As far as my knowledge goes, if one has no self owned property in the city where one works, or the owned property is far off from your place of work, you are allowed to take a house on rent. Also one thing that many fail to realise is, presumed rental income from a property that one owns, which is not either self occupied or rented out. One is allowed to own only single residential house in one city, any other house property has to be rented out and if not so, the rent as per the prevailing market value is assumed and added to your income for tax liability. But if someone works in a different city, one is allowed to purchase a 2nd house in that city, without any liabilities. Anything more than these two, has to be let out, and if not, you pay taxes on the presumed rental income.
Can we expect a video on ‘which ITR one should file if he is earning money from share market’. Also please make a brief video on step by step guide on this topic… Since it’s time to file ITR it will benefit many people.
Sir jyadatar companies khud hi Basic pay decide karti hai...jo ki 50 percent of gross earning nahi hota hai...to isliye HRA ka itna exemption nahi milta hai aur dusra HRA tax Exemption ki limit hai that is minium amount comes as per 3 HRA rules please refer to clear Tax for more Info.
can i claim the home loan deduction if the loan is on father's name but EMI registered to my account and I'm paying it? Or I can only claim once I transfer the home loan to my name?
You can't, You will require joint loan account where it will deduct. But father son joint account is not eligible for loan even two brothers are not. Only wife and husband.
Hi Sir, thank you for a detailed explanation. You are saying HRA and actual rent paid are two different things. My question is if my HRA is 300K per annum , but the actual rent I pay is only 150K per annum. Can i still claim 300K for HRA tax exemption? my company requires me to submit an actual rent receipt to claim HRA tax benefit. please excuse if this is a dumb question :-)
Bro... Actually you need to show company the real house pay slip. But here's a way to save your hard earned money, you may buy house rent pay slip book from amazon and make the payment of higher monthly rent and using Revenue Stamp submit its copy. Decide monthly rent by optimizing as per 3 Rules of HRA. You are welcome.
as per your example if your net income comes below 5L then the TDS which are earlier deducted also return so 1.2L additional money left for investment or party 🎊🎊
I agree to most of your points but to be very practical in a city like Bengaluru/Hyderabda/Mumbai, a normal stand alone flat cost you around 60 L. If I pay 20% as down payment still I have to take around 50L as home load.. so 20L loan is not practical for any metro or non metro cities.
PF do bar cut hota hai...once from employer and again from employee.. But basically dono CTC se hi cut Kar lete hai..Employee pf 80C me ata hai and employer PF alag se exemption milta hai
1. My house is on name of my father. 2. There is an house loan that I have got transferred from my father to me. 3. I live in the same house which is legally of my father and to which I am paying the house loan. So, Now the question is can I show both ??? a ) HRA to my father if I am paying some money every month to him b) House loan also in income tax Please suggest , Thanks
Hi Sir, Can you pls make video on HR policy of Pvt Ltd company with details *If the company has only 4-8 employees 15-20 employees More than 20 employees * Benefits for employees * Terms & condition * What is law on this *Responsibilities of company towards employees Etc.. Company situated in Delhi and Market place company (e-commerce)
I have one doubt, you told that HRA exemption can be claimed more that actual paid.How it possible, Rent receipt should be deposit. For example company paid HRA 12000/month but employee paid rent 8000/-. Then how employee claim 12000 rent per month. If paid, then Rented house owner PAN number is mandatory as it exceed more than 1lakh.
Your HRA exemption goes through 3 criteria. Eg. Lets Say your basic is 24000 ie. 12000 HRA 1. Actual Rent Paid - 10% of Anual basic 2. 50% of Basic 3. Actual HRA received From all 3 criteria whichever amount is lower is considered as eligible exemption. Here your hra Exemption is ₹67200. Well you are paying rent less than 1lac no need for pan, but it is good to ask beforehand to landlord with request 😀
@@sharishth HRA for Metro's is 50% and Non- Metro's 40%, other than that there is no different method, some companies do gives less than that of 50% or 40%, But it does not exceed it.
Yeah Criteria sabpe nhi lagega like I dont have a home loan and Rent 30k nhi hai. Let me state my own example. Gross Earning: 12,00,000 PF: 21600 Sodexo: 36000 HRA: 90000 PPF: 120000 ELSS: 30000 MediClaim: 20000 Still I am left with a lumpsum amount Even if I ask my employer to increase PF I will still have like 784000 in my hand How do I settle that, Get a home loan its not needed right now.
I have one doubt .If we take full deduction under sec 80C then we can not take benefit of rebate . As there are two income tax slab ... in which if you are taking rebate then you are not allowed to take deduction of 80C ...but if you are taking benefit of deduction then you are not allowed to take rebate only 250000 basic exemption is allowed ...please clarify
Since I'm living in my hometown with my parents, can i pay rent to my parents and claim hra? If yes, then will this be a special kind of rent agreement or can we just print a rent agreement ourselves ?
I am paying my mother rent 24k just transfer in her account this amount for transaction proof.Also file your mother's ITR and house your gave address for should be in your mother's name.Enjoy👍
@@executer77 Thank you very much for your answers. If its not too much trouble can I ask one more question, the rent agreement that I need here, can I just make it myself and print it ?
@@MrSatadal Yes but i think you only need to file ITR, if Rental income and other source of income exceeding tax slab relaxation for that particular individual , otherwise it is ok. Correct me if i am wrong ?
Don't listen to jetha laal, he has gone crazy in babita's love. I think if you pay rent to your parents and live with them, you can. (but cross check with someone else as well) My boss used to pay rent to his mother who lived in far away in a village, while he himself was living in a metro city. I never had a legality discussion with him but possible.
@@rajveersingh2056 @Rajveer Singh babuchak rajveer .. his question is for hra & loan in same city... And u r giving example of friend paying rent in village and living in metro.. also paying rent to your mother is legal.
I'm a software developer and my CTC is 28L. And I earn around 8L from doing Freelance work. And I have no investments (Except EPF, NPS, Rent and Health insurance) My question is Can I use Presumptive taxation on My total income (28+8 = 36L)?
@@arshsingal65 Next 10 years😂 No way. See the inflation rates, once this corona thing stabalizes, RBI will increase repo rate to counter the increased inflation. Increase in repo rate will increase home loan rate as well.
Appreciate your video but still I have couple of questions. 1. Company gives some percentage of Basic salary as HRA. It is not going to be 50% like you assumed here. 2. Company provides other allowances and it can be seen on the payslip like LTA, Internet allowance, special allowance. 3. For home loan, usually we do not pay complete EMI on the first year as most of the people buy a home which is in under construction so until after 2-3 you will not pay your complete EMI. Like after first disbursement the EMI is going to be around 6-8k based on the interest which is very low around 6.5-7%. 4. Most of the people do not live in such an expensive rented apartment/house. So taking 50% of your gross income as HRA will not work here and don't now how would a company allow that for a single employee.
You did not understand the logic. You should watch the earlier video and if you live in Mumbai you will soon realise that you will be paying such rent of you value time over money... Coz of you want to save money then you need to travel a min of 2 hours a day. I live in Mumbai and pay a rent of 23 k myself. I can relate to this.
@@swapnildeshpande9492 I live in Hyderabad and pay 21k of rent but HRA depends on the the basic pay and a company would not change the HRA policy for a single employee unless it is your company. The way he explained in the video is really good but not feasible as per me. Living in Mumbai is expensive and people earn more to maintain the expenses but not everyone earns well in this country. For many working professionals they buy house in the same city so they can either use HRA or home loan for tax exemption (I am taking maximum people's example here).
What if, Salary = 110000 Lic = 150000 NPS = 60000 RENT paid = 150000 (hra in ctc = 11000) Mediclaim premium = 30000( sr citizen). What would be the exemption amount? Is it taxable? If taxable, where else can invest to get tax relief?
🚨 *HELP* 🚨 1. If someone has paid expenses equal to his salary and no money left/less than 5 lakh left , then how much is the tax payable ?? 2. If someone has lost all his money (in stocks, gambling) or something else or its just a case of misplacement/fraud & now money/less than 5 lakh left, then how much is the tax payable ??
Video bohut a66a and informative hain..thank you..ek baat puchhni thi aap se.. Maine apka term or health insurance Ka videos Dekha..kya ye policies policy bazar se lena a66a Hain or direct company se? Apka opinion kya hain?
Very imp question....now govt employees comes under NPS ..so there no option of PF (deductions)...so in that context how a govt employees should save tax..if his/her salary is 12 lakhs...
