Budget 2024 Expectation: The wait for the budget is now about to end. Finance Minister Nirmala Sitharaman will present the budget on 1 February. Different sectors and taxpayers have high expectations from the Union Budget.
But, how far these expectations will be fulfilled will be known only after the presentation of the budget. According to earlier information received from sources, good news is coming for the employed. Changes may be seen in the budget regarding House rent allowance (HRA).
What is going to happen for the employed?
If sources in the Finance Ministry are to be believed, there are preparations to provide big relief to those working in different cities. Good news may come especially for those living in cities like Bangalore and Pune. In Budget 2024, the Finance Minister can make changes in the tax exemption available under HRA. At present, the scope of tax exemption available to those working in non-metro cities can be increased. Apart from metro cities, announcement is also possible for residents living in other cities.
Preparation to increase the scope of tax exemption in HRA
In the current system, rules have been made for metro and non-metro cities regarding house rent allowance. In 4 metro cities, up to 50% tax exemption is available under HRA by combining Basic-DA. At the same time, in other cities there is a provision of 40% discount in HRA including Basic-DA. Now in the budget, the HRA exemption limit for people living in non-metro cities can also be increased by 50 percent. Apart from this, the exemption of Rs 60 thousand available in HRA every year for non-salaried individuals can also be increased.
Non salaried people can get gift
The limit of tax exemption on HRA for non-salaried individuals is Rs 60 thousand. This can be increased in the budget. At present, under section 80GG, non-salaried individuals get tax exemption on House Rent Allowance i.e. HRA. The limit per month is Rs 5000 and the maximum in a financial year is Rs 60 thousand. Consideration can be given to increasing this limit.
How to get Income Tax deduction in HRA?
The condition for claiming income tax on HRA is that the taxpayer lives in a rented house. Tax exemption from HRA (House rent allowance) can be claimed under Section 10 (13A) of the Income Tax Act. The total taxable income is calculated by deducting HRA from the total income.
