If you are a tax-payer who has not filed her income tax returns for the financial year 2021-22 yet, you are likely to have only this task on mind this week.
After all, the due date for filing income tax returns for the financial year 2021-22 – July 31 - is almost here. Any further delay on your part would mean shelling out late-filing fees of Rs 5,000 besides having to deal with other monetary financial inconveniences.
So, if you haven’t complete the exercise already, you need to hurry up before the rush to file returns leads to technical glitches on the official e-filing portal and thus, delays.
And if you have postponed this task to the eleventh hour, you need to be extra careful and ensure that you declare income from all sources as also claim all tax breaks that you might have missed earlier.
To understand the various tax rules and benefits linked to housing, accommodation (that is, rental income, house rent allowance or HRA) and so on, Moneycontrol’s Preeti Kulkarni caught up with Vaibhav Sankla, Chartered Accountant and Founder, Billion Basecamp Family Office.
Edited excerpts of the conversation:
“If you haven’t claimed tax exemption on House Rent Allowance (HRA) while submitting your investment declarations, you can do so now, at the time of filing income tax returns.”
“You do not need to submit any documents while filing returns, but ensure that you have all the rent receipts and rent agreement in place.”
“Tax laws do not prohibit payment of rent to parents, but documentation needs to be in order. And, they have to declare this rental income in their income tax returns.”
“Many taxpayers tend to forget to avail of deduction under section 24B on pre-construction interest paid (or pre-EMIs on home loan taken to purchase under-construction properties).”
“In case of joint ownership of a house, it is best to be consistent with the share of ownership in the property throughout. Some tend to make changes every year, which can lead to complications.”
“Many tend to think that housing loan-related deductions (under section 80C on principal repaid and section 24B on interest paid) are allowed only if the loan is taken from financial institutions. However, even loans from parents or relatives are eligible for this deduction (provided you have maintained the requisite documents).”