Budget 2024: People are keeping a very hopeful eye on the last budget of the second term of the Modi government, although this is a short-term budget of the election year, so there is little possibility of anything big happening in it. In view of the Lok Sabha elections, there is also a possibility of increasing the scope of exemption in the income tax slab so that the tax pressure can be reduced.
You can avail income tax exemption with the help of your wife.
However, if you are a working person and are looking for ways to save tax, then today we are going to tell you those ways with the help of which you can get exemption in income tax with the help of your wife. HRA is considered very important in tax exemption and it is a part of your salary. It is worth noting that there is no exemption under HRA in the new tax slab, so if you want to avail this exemption then you will have to choose the old tax slab only.
If you want to avail exemption under HRA, then know about these 6 provisions-
You can avail HRA exemption by paying house rent in your wife’s name.
In many decisions given by the court, the rent paid by the husband to the wife has been recognized and it has been made clear that it will be exempted under HRA. The latest case is of Income Tax Appellate Tribunal Court in June 2023 in which the verdict has been given in favor of Aman Kumar Jain.
To avail HRA exemption in the name of the wife, it is advised that the husband and wife enter into a rent agreement like any tenant landlord and the wife issues a rent slip to her husband.
Along with this, it is important for the wife to show this in her source of income, even if her income does not come under the tax net, she should still file ITR for it.
In such a situation, the wife should have all the ownership rights and the husband should not have any involvement in it.
Name of the tenant (husband) and landlord (wife), amount of rent paid, PAN card of the landlord and signature of the landlord are required on the rent receipt.