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
Dear Khanindra Barman u can get exemption on Housing Loan after getting the property registered and as u will get it registered u will not get exemption on H.R. where u are residing…
Hi,
Is HR paid for Govt. accommodation allotted, exempted u/s 10(13A) or else ?????????
is rent receipt needed if hra p.m. is <3000 rs for income tax benefi
Hi,
Can I take the benefits of both HRA and Housing Loan Interest, if I stay in rented accomodation and given my own flat on rent to others but not to the family members. Although both the preperty is in same locality in mumbai.
can i claim water bill from tax because im staying at rented house. im paying house rent 8000 and waterbill 1500 for tank
Good day Sir,
This is in regards to tax benefit from house rent, i am a salaried employee and i am residing in rented apartment for the past 2 years and i dont receive any HRA from my company, furthermore i was not aware of the tax benefit from house rent paid because of witch i didn’t claim my benefit till now.
For above please advise following.
– am i eligible to claim tax benefit?
– can i claim 2 years tax benefit now?
– can claim it online by myself?, if no how do i do it?
thks / brgds
qasim
HI,
I have home loan running on 2 house in pune. I have not rented my second home. Do i have to show some proof for that. what is the value of rent i need to show for my Tax calcualtion.
Thanks
Lalit
My question is for availing hra exemption in Income Tax. Can a Husband or wife pay rent and claim HRA exemption. If yes under which section of Income Tax he claim exemption of HRA.
hi my husband and me are both central govt. employees, my husband had taken staff quarters before the marriage, as soon as we got married they started deducting HRA from my salary as well. the license fee hasnt been taken from me. is this correct? please advise
thank you,
Tina
Q. IS THERE IS NEED TO SUBMIT ANY PROOF OF HOUSE RENT PAID TO OWNER OF HOUSE TO EMPLOYER FOR CLAMMING RELAXATION OF INCOME TAX OF SALARIED PERSON WHOSE HOUSE RENT IS BELOW 3000/-PER MONTH
i have an equiry regarding that as to whether PAN NO. of the owner is necessary on the receipt who has issued the rent receipt to the tenant.
i am working in govt department on contract basis, i am not getting HRA but living in a govt accommodation, how much HRA is being deducted by my employer, on
I am working in technical edn dept of mah govt .my basic pay is Rs 59140.AGP Rs 9000+ DA .for getting benefit under 10(13A) which amt to be cosider for calculation of Excess over 10% of salary,whether salaryis basic payonly or basic pay+AGP or basic pay +AGP+DA,whichever is correct asper it act as on today.pl send comments.urgently.thank u.
I am paying rent of Rs.84000/- to my mother which has already been taken into account by the Company under deductions in income in form 16 by least of the 4 clauses. Can I again claim deduction in my ITR.1 return by filling in the bracket meant for Sec.80GGm in the return form ?
Hi…
I am living as PG. There is no rent agreement for PG
so Is it required to submit rent agreement to claim HRA?
If house rent paid in value is more than 1,80,000 per annum and land lord does not give pan & self declaration,then in that case what can be the solution to look for?.Can one pay 10.3% tax on his total reant paid,how does this work
1. I am an employee of Education dept.(teacher in a secondary school)I receive our salary as non plan scheme of govt. I m staying in a rented house paying Rs 3000 pm. can it be exempted from income tax ? can the total amount of a year 3000 * 12=36000 be deducted from total income ?
My Pay 16910+GP 4800 +DA 11072= 32782 pm. please answer me soon.
2. If the HRA you are claiming is less than Rs. 3,000 per month, no proof is needed. But if the amount you are claiming is more than Rs. 3,000 per month, you would need the following:
Rent receipts
Rental agreement
Is it true that if HRA claimed is less than 3000/-, no proofs would be required?
My son is staying in other city on rented house, and my self is in another city in rented house can get the tax rebate on commulative rent paid?
rgds
as the one condition for tax exemption on HRA is Rent paid- 10 % of basis salary. what is basis salary here? whether it is (Basic pay+ grade pay) or it also include DA.
For ex. my salary details are
Basis pay: Rs. 37400/-
Grade pay: 9000/-
DA : 23664/-
Rent paid: Rs. 11000/- pm
Actual HRA received: Rs. 8820/- pm
what will be tax exemption for these figure
J dixit
SIR. I WANT TO KNOW HOW MUCH RENT CAN BE PAID BY A SALARIED EMPLOYEE. I MEAN GOVE. EMPLOYEE.
Can rent agreement for less than 12 month should be registered by notary or without notarized but on Rs.100 stamp paper-non judicial paper for the tax deduction purpose for salarised person ? can we provide only rent receipt to IT department for deduction to avail deduction benefit?
i took home loan in hyderabad and my parents are staying there now i am working in hyderabad also paying rent now,near by my office.
i have the following doubts
1. can i claim HRA and housing loan tax benefits
2.how much amount are eligible for HRA
3. housing loan took in the name of myself only.
I am waiting for your reply
My question is for availing hra exemption in Income Tax can a Husband government employee can pay rent to his wife. If yes under which section of Income Tax he claim exemption of HRA.
Both I and my wife (both are employed) living with my parents but now the officer of my wife
is asking for rent receipt as a proof.Whether I can produce or not. Can both claim hra exemption. what are the legal implications.please provide some income tax circular about this
My employer is asking for PAN card of land lord as my rent is more than 15000.
1. Is it IT law ?
2. What if land lord is not ready to give PAN no.
3. Can i produce receipt more than actual paid rent ?
I have come across the following point while learning about HRA component and taxation:
If the HRA you are claiming is less than Rs. 3,000 per month, no proof is needed. But if the amount you are claiming is more than Rs. 3,000 per month, you would need the following:
Rent receipts
Rental agreement
Is it true that if HRA claimed is less than 3000/-, no proofs would be required?
My employer is asking PAN number of house owner incase rent is more than Rs 14999/-. When I talked to my house owner about his PAN – he said he does not have any PAN.
Is PAN of house owner required by Income Tax dept for rent above Rs 14999/-? Please advise.
Thanks, Swapan
sir
i am living with my parents and taking hra exemption by giving rent recipt in the name of my mother.
but this year our DDO is asking for rent aggrement along with rent recipt.
i want to know that it is possible to make aggrements with parents.
I would like to know –
1) How is P Tax calculated.
2) Under Section 10 what all deductions are included….
My monthly salary is Pay Rs15270+GP Rs4200+D.A.Rs9930+HRA Rs974=Rs30374 but i paid hra@5000/-pm,anually i paid 2500as professional task what is my monthly I.T in government as it is a rural area
sir, my basic salary is 23,225 and my HRA is 4200 and i am paying rent in bangalore is rs 8000 sir, pl tell me my much exemption i can get from HRA while calculating tax
i would like know where to put the deducted amount of HRA u/s 10 (13A) and Home Loan Interest u/s 24 in the ITR-1 SAHAJ form available. pls help.
sir i am working in very remote far flung area of pauri uttarakhand.now i am getting @460 pm hill allowances.should we deduct it as tax rebate?
08958033855 my phone no.atul nautiyal
sir
Is water and Electricity bill include in HRA.
I mean to say that when i will file my return and want to take HRA’s Examption than can i show whater and electricity expenses in HRA.
my question is for availing hra exemption under sec 10(13A) can a wife government employee can pay rent to her husband
If an employee under grant in aid scheme of Orissa govt. is not getting HRA from govt. But he is actually living in rented house. I want to know whether his rent amount per year is deducted from total income for the exemption of IT ? please answer me soon.
I am an employee of Education dept.(teacher in a secondary school)I receive our salary as grant-in-aid under non plan scheme of Orissa govt. We are not paid HRA by the govt. I m staying in a rented house paying Rs 1800 pm. can it be exempted from income tax ? can the total amount of a year 1800 * 12=21600 be deducted from total income ? My Pay 12600+GP 4200 +DA 7560= 24360 pm. please answer me soon.
my yearly pay is 189640
D.A yearly 75909
HRA yearly 18964
please tell me what is the deductuon for income tax
I am a retired employee and paying House Rent Rs.8000/- per month. But no H.R.A. is being received from the employer. So how the H.R.A. is claimed and deducted please.
I have exausted my 80c limit of 1 lac. in 80E I have claimed 40k as my mother is cancer patient.
my taxble income is 4.88 can you suggest any option for saving tax
Rent paid to Parent(s) / spouse can be claimed as exemption u/s 10(13A) ?
my wife have own house, she claim me maintainance charge for Rs.6500/- per month. can I income tax benefit.
subrata paul
What are the documents /proof required for HRA exemption. (tell which are must and which are optional)
I AM A GOVT SERVANT. MY ANNUAL TRANSPORT ALLOWANCE IS RS265925.00. WHAT IS THE AMOUNT OF DEDUCTION UNDER SEC10 OF I TAX. TELL ME THE FROMULA.
i took home loan in hyderabad and my parents are staying there now i am working in hyderabad also paying rent now,near by my office.
i have the following doubts
1. can i claim HRA and housing loan tax benefits
2.how much amount are eligible for HRA
3. housing loan took in the name of myself only.
I am waiting for your reply
my salary is rs 20000 per month
my house rent is rs 10000 per month
3 people share this rent
can u pls tel me how much i can claim ?
awiating for your response..
my salary is rs 20000 per month
my house rent is rs 10000 per month
3 people share this rent
can u pls tel me how much should i can claim ?
awiating for your response..
Hello Mr. D. Sudhakar,
Reply to ur queries as follows :
1. u can claim HRA but u cant claim for housing loan tax benefits as loan is the name of ur native.
2. u can claim HRA least of the following :
(i ) Actually received from employer
(ii) Rent paid – 10% of ur basic salary
(iii) 50% of the basic salary
3. in case housing loan took in ur name and ur wife u can claim both half share of principle and interest in ur and ur wife return.
i took home loan in my native and my parents are staying there now i am working in Chennai also paying rent now,
i have the following doubts
1. can i claim HRA and housing loan tax benefits
2.how much amount are eligible for HRA
3. in case housing loan took in the name of myself and my wife if we are working can we claim tax benefits(both)
I am waiting for your reply
Can a salaried person get benefit on HRA ( house taken on rent ) and benefit on Home loan if yes ,
can we take benefit on Principal amount paid of home loan and Intt. paid on home loan
can we take benefit :
1. HRA
2. Principal of home loan
3. Inttl on Home loan.