House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.
The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence. The place of residence is important. For Mumbai, Kolkata, Delhi or Chennai, the tax exemption on HRA is 50 percent of the basic salary, while for other cities it is 40 percent of the basic salary.
The city of residence is to be considered for calculating HRA deduction.
The least value of these is allowed as tax exemption on HRA:
Actual rent allowance the employer provides as part of salary in the relevant period during which the rental accommodation was occupied Actual rent paid for the house, less 10 per cent of basic pay 50 percent of basic salary if you reside in Mumbai, Calcutta, Delhi or Chennai, or 40 per cent if you reside in other cities.
In order to claim the exemption, the rent must actually be paid for the rented premises which you occupy.
Also, the rented premises must not be owned by you. As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified.
For the purpose of this deduction, salary means basic salary and includes dearness allowance, if the terms of employment provide it, and commission based on a fixed percentage of turnover achieved by the employee.
The deduction is available only for the period during which the rented house is occupied by the employee and not for any period after that. It is to be noted that the tax benefits for home loans and HRA are two separate aspects.
In case you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on a home loan.
You need to submit proof of rent paid through rent receipts, duly signed and stamped, along with other details such as the rented residence address, name of the owner, period of rent etc.
How it applies :-For example, assume one earns a basic salary of Rs 20,000 per month and rents a flat in Mumbai for Rs 5,000 per month. His actual HRA is Rs 8,000. He is eligible for 50 percent of the basic pay for HRA exemption.
Least of:
- Actual HRA received – Rs 8,000
- 50 percent of basic salary – Rs 10,000
- Excess of rent paid over 10 percent of salary, i.e., Rs 5,000 less Rs 2,000 – Rs 3,000.
As such, Rs 3,000 per month is the least and will be the exemption allowable for HRA deduction.
(Republished With Amendments)
Author Bio
I am a PSU employee. .and I live in company Guest House, getting HRA in salary and I am paying each month HRA amount to Guest House through my credit card every month. Can I avail IT exemption on my total HRA amount paid to Guest House?
I am living in my own flat , but I am payng maintanance charges Rs,21000/- quarterly, can I get exemption for this
I am a PSU employee. .and I live in company Guest House, getting HRA in salary and I am paying each month HRA amount to Guest House through my credit card every month. Can I avail IT exemption on my total HRA amount paid to Guest House?
I am living in a company owned accommodation and getting HRA and nominal rent is recovered from the salary. Whether can I get HRA exemption benefit for rent paid outside the vicinity of place of work wherein my family is staying..
Could you please confirm below-
1- Housing loan interest benefit can be allowed before home possession.
2- Can HRA exemption be allowed if we are taking the benefit of a housing loan interest benefit for an under construction home in the same city?
R.Sir ,
I am working working in a multinational company , getting BASIC 258000/- and HRA 129000/-. But as I am leaving with / in parential house( house is registered in mother’s name). Question can i avail benefits on HRA ?
Sir I am a govt. Servant. I get surrender of leave that is 50 percent of monthly salary that is basic plus da. Is surrender leave count for hra calculations in total twelve month salary in addition?
Am a PSU employee. .and I live in designated company quarters . HRA is not given but perquisite tax is being deducted from my salary. .
Can get hra rebate in tax?
Can I avail IT exemption on my total HRA paid towards designated quarters?
will i get exemption on amount deducted as “Value of perquisites as per section 17(2)”
iam paying 7000 Rs maintenance separately to society .will i get the benefit in HRA . Earlier my owner was taking rent including maintenance but now he is taking rent excluding maintenance and iam paying maintenance directly to society. WIll i be able to avail benefit in HRA
Am a govt employee. .and I leave in designated quatrus. hra deducted every month in my salary. Then i can get hra rebate in tax
I am residing in a designated quarters. Can I avail IT exemption total HRA paid towards designated quarters.
Sir, iam paying house rent of ₹15000/-pm. Is any essential of owner’s Pan card to get HRA claim
One employee is not recieving HRA from his employer but paying house rent,how much he will deduct while calculating IT
Sir I stay in a rented house paying monthly rent of 16000. I also receive Hra of 8263 every month from employer. I own a house at the place of my employment at a distance of 30km( I declare the hose for occupation). I own another house at different place the rent against which I include for I.T purpose. Pl clarify whether iam entitled to deduction of Rs 8263 received from employer towards HRA above.
Sir, Under section 10 (13 a), for calculation of rent paid in excess of10% of basic pay, why we have to include DA also..
please enlighten.
I am getting lumpsum pay of Rs.2.5 lac pm(30 lacs per annum),residing in periphery of Ludhiana Pb.How much % of the lumpsum pay ,HRA can be deducted for I.T.purpose.(with all formalities of proper receipt ,pan no. from the landlord taken care of)
Thanks.
Sir, i leave in a city 25 km from my posting place.how i can exemption hra in itr
Dear sir
I have lease accommodation provides by bank . Lease amt fixed 7500 rs.but Bank paid 5000 rs. Paid to rent owner. Excess amt. 2500 paid by me.
Can i show 2500rs. In hra exemption in income tax.
Dear sir,
Thanks for helping people like me poor in IT.
i took home loan in Bangalore and my parents are staying there now i am working in Bangalore also paying rent now,near by my office.
i have the following doubts
1. can i claim HRA and housing loan tax benefits
2. housing loan took in the name of myself only.
3. can i claim HRA if my wife staying Bhubanswar due to my children study propose .
I am waiting for your reply
I have been provided government quarter and Rs.226 is being deducted for same per month.How can I take benefit of RS.2712 in income tax statement
Please reply if the licence fee paid for govt accomodation is exempted under sec10
When an employee lives in a quarter at a concessional rate which is less than house rent received as per govt rate what will be the tax calculation? Kindly refer related rules
Hi Sir, For FY 2018-19 I have filled ITR 4. For this financial year, I have worked as individual consultant for first six months later six months worked as employee. So is it possible to claim HRA for first six months against 80GG (30K) and remaining six months under hra u/s 10(13a) ?
I have recived notice unde 143(1) for deposit tex amount.
Actuly IT department not validet my rebit of 89 due to not submited 10E online at the time of online e-filling.
Now after reciveng notice I have submited 10E online Us that validet or not
If not then what to do
Dear All,
I am a salaried person.
I have filed the ITR for financial year 2018-19 in that ITR I have claimed for house rent which I am paying to the owner of the house. But I have got the mail from centralised processing centre that there is a incorrect claim u/s 141(1)(a)(i)
Error discription[tax payer has claimed house rent allowance (HRA u/s 10(13A)), hence 80 GG not allowed.
My annual income is 5.5 lac.
Kindly suggest.
Regards
Anil Mahajan
(M)9595457779
In my processed ITR there is a line which says “Allowance to meet expenditure incurred on house rent” and this table shows the Rent paid by me. Do I need to do anything more. The demand amount is NIL.
Sir, I am a salaried person and my son is studying abroad. There he has rented a room for his stay and I am paying his rent and also for the flat I am staying in India. Can I take both the rents for calculating HRA exemption?
I am a salaried person, and was working from 20 July-18 to Mar-19 in the FY 18-19 and while from April-18 to 19 July-18 i was unemployed.
During the employment period i got HRA and claimed HRA during the period of service and while unemployed period i was paying house rent.
So my question is that can i claim HRA (10(13)) & House rent paid (80GG) in a same FY??
House Rent Paid – section 80GG ( Apr 18-Jul18)
HRA section 10(13) (Jul 18-Mar 19)
Sir, I am CG Employe and want to know that I residing in my self occupied house, My Employer giving HRA ,, Can I avail Exemption U/S 10 (13a) ??
Thanks,
I’m a govt employees of basic 48000, my corporation provides 16740 as HRA per month.. It is saying that I won’t get HRA exception because my basic crossed 40k as per rules.. My question is how?
My Employer is enforcing to show registered rent agreement. And Saying only Rent Receipts + Owner PAN number will not work to avail benefit.
What can I do?
Annual HRA Rs. 50000 PAN card is necessary
Sir,
My employer cut the Maintance charges along with HRA. How can I claim for maintenance charges??
HRA-5000 + 2400(maintance).I am govt employee.
In which column total intrest paid of HBA may deducted at the time of projection of I.T.
Am a Salaried Person & stay in rented house owned by 2 Joint Owners of House. My Lease Agreement is to pay total Rs.62000/- total rent per month wherein as per agreement I pay Rs. 31000/- to each of 2 Joint Owners of house Since individual monthly rent paid Rs.31000/- to EACH of 2 joint owner is less than Rs.50000/- but sum up total Rs62000, DO I NEED TO DEDUCT 5% TDS? Pls answer & help on same.
Can we claim HRA and deduction under section 80GG also of Rent paid
can NR claim HRA exemption against his family?
If a person doing a job in psu (LICI) as Dev.Officer and he receives FCA ( fixed convenience allowance) 3500 per month with his salary. Than In which section of I Tax and how much amount of FCA will permissible for rebate for him
Dear Sir .
If a person is doing his job in pub sector (LICI) as Dev. Officer and he takes fixed conv allowance 3500 per month with salary ,In which section and how much amount will be permissible for rebate, Please guide me
Dear Sir,
A person has taken a house at rent at place A where the bank branch is situated but his family is residing at another place in rented premises as the school is in another city say Place B. The person joins the Family in weekends. The person is paying rent for both the residential accommodation. Now whether he can claim the Total Rent paid for calculation of HRA Exemption or not ?
My owner is denying to give Rent Receipt. Kindly advise, how can I claim the HRA?
Dear Sir,There is no provision for HRA allowance u/s 10 in ITR 1 for filing return of income for Salary assessees in Govt portal ?What is the reason?Please clarify.
Some employees of Central Govt live in his own house the get HRA but this time HRA deducted by DDO due to NOC from house allotment agency , is NOC essential for calming HRA IF NOT SO WHAT DOCUMENT rule quoted.
I do not receive HRA but the company pays directly to the landlord. Can I claim refund on the amount paid as rent by employer?
How Income Tax department will know whether rent receipts are original or fake? I mean anyone can submit fake rent receipts to claim HRA exemption.
By fake, I also meant rent shown higher than actual.
Sir, I am a govt employee working for a PSU and dont get HRA paid as i was provided with a quarters in Rajasthan. But my parents who are dependents were staying in my native state. I do pay the rent for the accomodation for the parents. can i claim the HRA exemption for the rents paid by submitting a rent receipts. kindly clarify
Total rent paid by me from Apr 16- Mar 17 – 193240/-. It is including the rent I paid in Pune which is 24000/-.
2 companies I have worked in AY 17-18-
1. From first company, I worked until June 2016 (Pune),-
– Details of salary is below (from Apr -June)
Basic – 84600
HRA = 42300
2. In 2nd Company From July 2017 – till now (Bangalore)
– Details of salary is below (from Apr -June)
Basic – 272884
HRA = 136442
I was not able to furnish my rent receipt to my first company and when I inquired about it in present company they informed me that I can only mention rent paid from July onwards. Now I am seeing in my Form 16 (2nd company) they have mentioned only Rs 101244/- as HRA deduction, they have added extra 35198 (136442-101244) in my taxable salary. I am pretty much confused how they are calculating it.Could you please help me