How To Pay Very Little Taxes
Utilizing HRA benefit
As per the Income Tax Act you can avail tax benefits for HRA, interest on housing loan till you fulfill certain required conditions.
House Rent Allowance (HRA) is covered in u/s 10(13A) of the Income Tax Act while Interest on borrowed capital for acquisition or construction of house property is covered in u/s 24(b) of the Income Tax Act. Those living in rented house can utilize section 10(13A) and avail deduction.
Others living in their own house can’t be profited under this section, but if the house is in your parent’s name or wife, pay rent to them and claim HRA deduction, only if the property is registered in their names. This is a useful strategy if you are in the higher tax bracket and your parent's income is lower.
READ MORE: India Services PMI Jumps To 5 Month-High In Nov: HSBC
