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 Sir,
i’m staying in lease house.. i have given lease agreement copy to our HR for claiming HRA exemption, but they have rejected due to cash transcation not allowed.. only cheque/NEFT payment only accepted.. pl guide me to get the HRA exemption.. share the any legal law where refering..
pls
Dear Sir
For claiming HRA exemption is it mandatory to submit the rent agreement or is the submission of Rent receipts sufficient/necessary enough for the same.
can an employee claim hra exemption by producing rent receipt (showing a different house address from the official one) from a owner of a house even though his/her wife/husband has a housing property in his/her name
Suppose a person joins a company on 16th September 2014, the salary paid is proportionate. As such if the monthly HRA payable is 40000, then the prorate HRA will be 20000. Now if the rent receipt for the period 1st Sept to 30th Sept is produced for say 23000, then will the rent for the entire month be considered against the 20000 HRA or will rent also be halved to 11500.
regards
Venkatesh Iyer
Sir,
I am govt.employee,residing in my father’s owned house at Delhi and paying rent for that.unfortunately, my father expired on 28/01/2014. So pl. tell me whether i can avail HRA rebate u/s10(13A) for 2014-2015 and whether my mother can sign on rent receipt (property is still in my father’s name) Here I add that I am still paying rent continuously to my mother Pl. advice
with regards
Animesh.
I stay in my own house for which i pay property tax every year. Is this tax paid be exempted from Income tax?
Sir
I have my own house in Delhi, but for some reasons I have also taken a house on rent. Can I claim Income Tax benefit on HRA.
Sanjay
Hi,
I am working in Bangalore and Family is staying in Hyderabad. Company is not accepting HRA which i am paying in Hyderabad. Presently I am staying in Bangalore in one of my friends house . is this is correct or do we have any other options to tell them to consider my HRA.
Hi,
I am a Government servant and purchased a property availing Home loan. I am staying in the same house and receiving HRA. I am claiming interest benefit for the home loan. I would like to know whether total amount of HRA is taxable or any deductions cane be claimed towards annual maintenance incurred and Municipal Taxes paid towards the property?
Tks and Rgds
Srinivas
i am govt employee
my basic salary is 16650 + 5800 (GP) i.e: 22450/-
my city HRA is 10%
i am not getting HRA because i occupied govt house (quarter) with 5% (of basic) more deduction of my salary as maintenance deduction.
now my employer forcefully deduct more TDS than my actual by 7.5% of gross salary !!!!!
Tell me weather my employer is correct or not if yes what rule of IT exists
Dear Sir
my basic is 16000 and HRA is 8000, I pay rent 9000, but no receipt and pay by cash. Residing at Chennai. What would be my exemption in sec 10(13A)
Pl suggest
Thanks
The articles are very good. Pl. provide means to read them in pdf format also.
Thanks
My salary-75000/ month
Staying in rented apartment in Delhi, want to buy flat in Guwahati.
want to know about tax exemption on housing loan if not planning to stay in the self owned house in guwahati
Dear Sir,
Me and my Brother own a flat jointly. As my parents has contributed a sum of amount during the purchase and we have cleared the Housing loan amount and currently we dont have any benefits via housing loan for this year.
Currently earlier contributed amount from my parents i am paying an amount of 8000 as rent to them everymonth and the property is in the name of mine and my brother. Can this be claimed as HRA benefit but getting the Rent Receipt from my Parents?
Thanks in advance for your response.
Dear Sir,
Me and my Brother own a flat jointly. As my parents has contributed a sum of amount during the purchase and i have been paying an amount of 8000 as rent to them…..As the property is not owned by my parents but every month i give them the amount. Will i be eligible for availaing the HRA benefit?
Thanks in advance for your response.
Can I show rent Rs 20000/- per month, I am ready to provide Pan Number. Please advice.
Regards,
Sir ,is house rent receipt required to fill income tax return. When i am filling it online.Because my owner does not give me any receipt. So please suggest me.
salary – Basic + DA – 619020/-
my total HRA for last year – 30605/-
house rent for last year – 30000/-
live in rural place
so what should be deducted u/s 10 ???
query:
I am working in a MNC Company and getting Rs.250000 yearly under HRA.
But I am staying in a Hotel near to my office for the last 11 months paying a room rent of Rs.1274/- per day. Can I get the exemption under
HRA. If so then please let me know the procedure.
regards
Bhanu
Dear Sir
For claiming HRA exemption is it mandatory to submit the rent agreement or is the submission of Rent receipts sufficient enough for the same.
I have not house rent receipt(HRA). please guidance for HRA exemption for income tax benefit?
i am getting Rs. 66,000 as a house rent and i am paying Rs. 80,000 as a house rent per year so what HRA deduction could i get as per rules of income tax.
from :- jaipur,Rajasthan
I am government employee. .. I getting hra in ma salay. And the house is on my mothers name… so in short its not my house… so in this case I am tenant… should I pay the rent to my mom?? And can I claim for HRA deduction. .. –
I am working in IBM, Hyderabad.
Can I show my rent receipts of nagpur, maharashtra as i am working from home.
Has rental agreement been made mandatory from this FY 2014-15?
is licence fees for government accommodation taxable ?
Hello,
I’m staying at one flat on rent for some duration. In case I’m leaving the city and staying in other city on rent basis. Now my total rent amount goes beyod 1 lac. In this case how can I give PAN card of any of my owner.
or how to calim HRA exemption please suggest.
I am government employee. .. I getting hra in ma salay. As I am unmarried. . And the house is on my mothers name… so in short its not my house… soin this case I m tenant… should I pay the rent to my mom?? And can I claim for HRA deduction. ..
I am working in private org. Myself and wife owning apartment jointly and it is rented out . I am staying rent house with my family due to my son schooling. MY wife is homemaker.
Can I show rent what i am getting from my own house as wife’s income ?
Can I show rent amount what I am paying for current house in my TAX claim ? if yes, Can I show HOME LOAN as part of my tax claim ( i am paying monthly EMI ) ?
Please get me answer. Thanks
I had given rent receipt for HRA exemption on April-14, but in the month of Oct-14, i have moved to my own house and i am claiming housing interest for tax exemption, now my question is should i get the HRA exemption for the first 6 months and what is the calculation.
I AM WORKING IN CENTRAL GOVT DEPARTMENT AND STAYING IN GOVT ACCOMMODATION. I AM NOT AVAILING HRA AND A RECOVERY OF 370 PER MONTH MADE AS LICENCE FEE. SHALL I DEDUCT THE LICENCE FEE OF GOVT ACCOMMODATION FROM MY INCOMEFOR THE PURPOSE OF INCOME TAX?
Greetings,
I am NRI and I have a independent house in India and my parents have been living in that house almost 10 years. Recently due to old age problems, my parents moved to rental house in our home town. I rented out my house and that rent goes to my parents and they pay rent (slightly higher rent) at our home town. Do I need to pay tax on rental income? Theoretically I get rent, but in reality I don’t get any rental income. My parents do not own any house. Please advise.
Dear Sir/Madam,
I stay in Bangalore in a rental house and my spouse and child are living in Chennai in a rental house. How can i claim my HRA. Is that i can claim both. Also my Chennai rent is more than Bangalore.
I receive professional fee, & pay rent of 24k, no hra from employer, how to avail tax exemption…
Is HRA taxable , after getting government accommodation. I recently allotted the government quarter and want to know whether for the next financial year I have to pay tax on HRA or not.
SIR,
MY BASIC SALARY IS 45000 PER MONTH AND NO HRA IS GIVEN BY THE EMPLOYER .I PAY 4000 PER MONTH AS RENTED ACCOMODATION . CAN I GET TAX EXEMPTION ON RENT PAID AND TO WHAT EXTENT
SIR,
MY BASIC SALARY IS 45000 PER MONTH AND 45000 DA AND NO HRA IS GIVEN BY THE EMPLOYER .I PAY 12000 PER MONTH AS RENTED HOUSE . CAN I GET TAX EXEMPTION ON RENT PAID AND TO WHAT EXTENT
IF A PERSON GETS BASIC SALARY AS 22000 RS AND SAME DA TOTAL 44000 AND NO HRA IS GIVEN BY THE EMPLOYER. I AM PAYING 12000 PER MONTH AS RENT OF HOUSE . CAN I GET TAX EXEMPTION ON RENT PAID AND TO WHAT EXTENT
SIR,
MY BASIC SALARY IS 45000 PER MONTH AND NO HRA IS GIVEN BY THE EMPLOYER .I PAY 12000 PER MONTH AS RENTED ACCOMODATION . CAN I GET TAX EXEMPTION ON RENT PAID AND TO WHAT EXTENT
Rent receipts are not available
HRA deduction allowed?
i got 30000 fixed payment plz give me adivac
1. can i claim HRA and housing loan tax benefits
2.how much amount are eligible for HRA
My salary is 45000/-
Add. HRA 16500/-
Total 61500/-
I in actual Pay Rent of Rs. 30,000/-
how much HRA deduction can i Claim
Income tax exemption u/s 10 (13A),should also be avbl in case of employee not getting HRA and not paying any house rent as he is staying in his own house. Any comment in case of those who are staying in their own house and not getting any HRA?
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.
I stay in Delhi and work in Delhi NCR. I have a home loan running for a house in a different state for which I claim tax ememption under Sec 24. While the occupants are my parents but I show it as let out and declare notional rent on which I also pay tax (TDS).
If I buy another house in Delhi NCR on bank loan and put it on rent or self occupy, will I be entitled to unlimited tax exemption on the interest paid on the new loan for this house in Delhi NCR (post possession)?
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.
what maxim amount without any paper (pan card) he show the amount it
Is it Mandatory to submit “Rental agreement” in addition to “Rent Receipt” to claim HRA for salaried emp? I am claiming HRA for Rs. 8300.
I changed my company in Sept 2013. My previous employer (A) did not consider HRA exemptions for my period of employment with them (Apr 13 – Aug 13). Now, when i submitted my tax calculation sheet from A to current employer (B), in support of previous employment income, HRA exemption was only given to me for current employment period (Sep 13 – Mar 14), even though i submitted rent receipts and rental agreement for Apr 13 – Aug 13. This has resulted in heavy tax deductions. I consulted current employer and they asked me to contact previous employer. But the previous employer says, they cannot do anything now as my account is closed with them. Being helpless, I am writing here hoping someone can help me out in this situation. Is there any way my HRA exemptions can be considered while filing IT returns and hence get a refund of excess tax deducted??
Dear Sir,
I need to understand one thing, whether rent paid can be claimed for the period in which a person is unemployed during a part of the FY and subsequently on obtaining employment in the same FY claim rent paid for the unemployment tenure.
Dear Sir,
I own a small house which I have given for rent and declaring the income and paying tax. However, I am staying in the same area with all my family members in a bigger house and paying rent. Can I claim the tax benefit for my HRA for the rent paid. Please advise.
Sir, I am staying with my spouse in co’s owned accomodation at Sikkim for which
my employer is charging rent @ Rs 2500 PM which is deducted from salary. I have also another rented accomodation in Kolkata where my dependant parents are staying for which I have to pay rent @ Rs 7000/- PM.
Please advise, can I club both the rentals for claimig IT benefit