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)
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my total salary2,66754
Hra250123000
House rent monthly5000
Am i eligible exemption House rent?
Plese reply sir
Hello
I am government employee and resides in a rented house but paid on my wife’s name and my wife is a housemaker. So, am I eligible for seeking HRA exemption.
I have taken two houses on rent, one for me at my work place & the other for my family in a city 200 km away from my work place. Please advise, can I club both the rentals for claimig IT benefit.
i got 44000 fixed payment plz give me adivac
1. can i claim HRA and housing loan tax benefits
2.how much amount are eligible for HRA
Hello,
I want to know that Rent agreement is on my name and can my wife take HRA exemption(as I m not taking any tax benefit with that paying rent)?
And if my landlady not ready to provide PAN no./self declaration also then what should we do?
Please reply asap.
Thanks & Regards
Vicky
Sir, my friend is a govt. Servent and living in rural area having average basic pay of Rs.128200,average HRA of Rs.16880 and living on rental basis by paying of Rs. 25000 as rent.How many Rs. Exempted from IT?
Thank’s Himanshu sir.
Dear Sobhit ji
Yes you are able to claim deductions u/s 80C provided the home loan & property should be in your name. Even HRA is also claimed if u are paying rent and not leaving in the self owned property.
Thanks & Regards
CA Himanshu Mohta
Dear HemChandra ji
AS per your given salary HRA exemption =MINIMUM of (40% (50% for metros) of Basic+DA or HRA or rent paid – 10% of Basic+DA)
AS per calculation
1.) 40% of salary is (128200*.4) 51280/-
2.) HRA received 16880/-
3.) Rent paid (24000- 10% of basic salary 12820) 11880/-
Hence Your Maximum exemption is 11880/- & Taxable Amount is 5000( 16880-11880)
Thanks & Regards
CA Himanshu Mohta
Dear Prachi,
In reference to your query that are you able to claim deduction of stamp duty and house?
Yes you are able to claim stamp duty under section 80C & interest on Housing loan is claimed as losses from house property & Principal amount of housing loan repaid is also claim u/s 80C, subject to maximum amount of Rs 1,00,000/-.
Thanks & Regards
CA Himanshu Mohta
Sir,I am gov.servant.my basic pay excluding grade pay is 128200 and living in rural area on rental basis with paying Rs. 24,000 rent/yr and i got HRA from office is Rs. 16880.How many Rs are exempted for IT?
Sir,
I am a government employee getting HRA working in Navi Mumbai. But I am staying in government quarters at Mumbai and HRA is deducted. I have purchased a house in my name in Thane district (Dombivli). For this purchased house, can I take rebate of housing loan and Stamp duty charges paid by me in Income Tax?
Hi,
I have own flat in Ghaziabad, U.P. and I am staying in rented which is in Delhi.
Would I get Tax rebate on both HRA and paid Interest of Self Occupied Property?
My house give on rental he pay me 15500 rs pm. Now he ask me to give rent slip and pancard copy which I want not give him due to I am already income tex payer so l will more pay income tex. If I refuse him to give rentslip and pancard copy what can he do
sir
i am working in bsnl meghalaya as tenure transfer ,can i get hra exmption for my old posting where my family resides and my present posting iam staying in rented house
please ans sir
whether D A on on transport allowance is taken for calculation of HRA rebate for income tax
i am a Govt servant whose tax is deducted at source. I filed my return online for assst yr 12-13 on 14-08-12. during 1 -04 12 to 22 -04 13 I claimed HRA and inturn paid Rs 17500 to the land lords as rent. I however did not reflect this in the return for assst yr 12-13. I have rent agreement and rent receipts from the land lord however since tax is deducted at source HRA exemption figures are not reflected in my Form-16 issued by my employer.The employer is also not accepting rent receipt/agreement and declines to change Form -16. Now how can I independently revise my IT RETURN. Also even if I revise my IT return and reflect this amount under Deductions under Chapter -VIA at para 2 on ITR-1 how do i sent rent receipt/agreement as documents to proove.
Apart from this I also am repaying Rs 25000 /mth to HDFC towards a flat for which I have still not got the possession. HDFC has forwarded a cerificate reflecting how much out of this goes towards repayment of the principal. Can I reflect this also in the revised return and if so under which section and how much amount.Also do I have to sent copies of any docs in this regard also as a proof and to whom.
I am a Govt. employ ,residing in govt.flat , paying rent of the house.Not getting any HRA.Shall I get benefit of the rent paid to govt.
My deductor is not filing eTDS for last 2&1/2 years.IT deducted from salary is not reflected in 26AS.Repeatedly I have made request to file eTDS.What shoul I do.CPC has send me demand notice twice in reply to my eRetuns?
I want to get tax benefit on the old rented house where my spouse & children are still living but I am living in different rented house in another place where i have recently been transferred. pl tell me whether i can get the tax benefit on the old rented house or not ?
no
Due to transfer from one district to another my spouse & children are living in the old rented house where as I had avail another rented house in the new district. May I get the tax benefit on the old rented house where my spouse & children are still living.
If i submit rent receipt of Rs.4500/per month -to the employer……it is necessary to submit Rent agreement to the employer. if yes then what the limit for submitting rent agreement.
Regards
Sukhchain Singh
Dear Sir,
I Want to know abt some tax Exemption.
How can be take the Exemption in his salary when we file his tax online Deduction of se sec 10 (23A)in not Seeing.
Pls help mee
Regards
Ravi Sharma
i paid house rent rs.3000/- and my 10% salary is rs.3500/- then my exemption is?
Hi,
Can a salaried person get tax-benefit both HRA (home taken on rent) and Home loan (Under construction Property) Principal amount & interest within same city?
Property possession after 2 years.
Please reply in details.
~Dipesh
My salary is 50000 p m my house rent is 20000 p m please tds
Please clarify me…..if i submit rent recipt of Rs.9200/per month -to the employer……it is necessary to submit Rent agreement to the employer?????? if yes then wht the limit for submitting rent agreement.
1. I am an employee of Education dept. Govt. of Assam(T.G.T in a Middle 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 10970+GP 3300 +DA 10274 pm. I live in a small town.please answer me along with the calculation.Thanks.
I am an employee of Education dept under Govt. of Assam.(T.G.T in a Middle 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 10970+GP 3300 +DA 10274 pm. please answer me soon.
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.
K.Parhi Says:
Can a salaried person taken on rent and get the benefits of two houses in different places to reside his own and his dependents.
the employees availing HRA while residing in own house are at a disadvantage as they have to bear the brunt of full tax on HRA received., while those with provided official residence or leased accommodation are subjected to a very modest sacrifice from the salary. This anomaly needs to be redressed.
dear sir
i have change my job in the month of june 2012 , my pervious employer give me farm 16 without showing HRA assumption for month of april & may , & my current employer does not provide me the tax benifit for HRA paid against amrip & may 2012 , please advise cna i get benifit for House rent paid for month of april & may 2012 ,in return
my salary-Basic Salary -17140-GP-4800-DA 15797-HDA-480-HRA-1920=40137. my total HRA is 23040.Can I deduction HRA u/s.10(13A).Last year I deducted total HRA.But now my D.D.O Clerk said to me HRA will not exemted .Is it right or not?Give me reply soon.
deduction u/s 10 hra how show in itr-1
Sir
i am state government servent being residential duty living in government quarters. . my HRA is deducted in my salary. may i take income tax examption under section 10(13a) ?
if i clamed h.r.a.less than rs.3000/- p.m. Is
there need of rent reciept given to my
deductor?
Sir,
Husband and wife are both government employees, both are living in government quarters. Quarter is in the name of husband. His HRA is deducted in his salary. How wife IT H.R.A calculated?
Sir,
Husband and wife are both government employees, both are living in government quarters. Quarter is in the name of husband. His HRA is deducted in his salary. How wife IT H.R.A calculated?
I am working bihar gov. contract job, my sealry is 18400.00 p.m.
how to rebate H.R.A in income tax. plz sent details.
If I paid House rent Rs.3800.00 p/month is there need rent receipt given to my D.D.O.
If I paid House rent Rs. 3800.00 p/month .is there need of rent receipt given to my D.D.O.
if any employee handicapped e.g.two fingers loss in right hand. Can such a employee take rebate under section 80 U?
if i clamed h.r.a.less than rs.3000/- p.m. Is there need of rent reciept given to my deductor?
If an employee under contract basis in govt.dept.& he 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.
reply t m.satyanarayanarao doubton february1,2011o
my monthly salary is 32225
my basic pay is 16220
I m live in kurukshetra,Haryana
how much. HRA deduction
Standard Lisence fees paid by Govt. employee for accommdation provided by Govt will be allowed as deduction under income tax and under what section?
how do you caculate the HRA for employees
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.
whaat is the meaning of basic salary for the purpuse of hra rebate in income tax of govt employee in delhi?
pay
gp
da
for old pension employee
for new pension employee