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 receiving hra every month in my salary.I couldnot submit my rent receipt to my employer as I was on leave for 6 months.My employer has affected TDS on hra paid .
I want to claim deduction u/s 10(13A) while filing ITR1.
As there is no column showing 10(13A) in ITR1 form please guide me as to how can I show hra paid claim amount in return.
Since a few days are left in filing return last date your early and timely guidence will be of much help to me.
Thanks.
I got HRA from central gov 10% of basic sallary. Not include DA in basic for calculate HRA.
Why you include DA in sallary when calculat 10% of sallary for calculate HRA amount taxable
If husband paid rent from own salary and wife is also working , can wife avail the HRA Examtion.
i want to know that husband paying the rent of house from own salary but wife is also working , can wife avail the HRA examtion she is not paying rent .
thanking u
Dear sir ,
i m employed with Pvt Ltd company in pune and I have a basic salary of 6125 and my HRA is Rs.613 . i am paying a rent of Rs 12000 . but my company is still considering HRA of 7356 for Tax exemption .
My question is that can a company decide on its own how much HRA should be given to their employees or is there any mandate that HRA should be 40% of basic .
Hello,
I live at my father’s residence. Can I claim HRA tax exemption?
Regards
Recently i moved to non metro city, but my family not yet relocated, can i claim HRA only for my family?
In case yes, will it be calculated as 40% or 50% of basic salary ? Because my family is in metro city while i am in non metro city.
I will be claiming the HRA only at time of tax filing.
i live in quarters provided by me from my employer(govt ) for which hra is calulated in my gross salary and also deducted from my salary and net salary is given to me every month . Can i claim HRA rebate for quarters provided to me
Iam paying Hostel Rs. 5500/- including food.
How i can seperate food cost and claim HRA Exemption u/s 10(13a)
I get salary of Rs 4.0 Lakh Per Annum. and i pay house rent of rs 14000 per month. i do not get HRA from my employer.
Cn i get House rent rebate
Pl tell how to claim HRA exemption of more than one lakh in case landlord does not have PAN |Card as living abroad
he taking HRA per month 25k,
he eligible for exemption HRA
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. 159320/- yearly
Grade pay: 4200/- pm
DA : 259072/- yearly
Rent paid: Rs. 5500/- pm
Actual HRA received: Rs. 13590/- yearly
what will be tax exemption for these figure
if I lived at own house
Me and my wife are both working and are getting HRA from our respective companies . We have jointly taken a house on rent. The rent agreement thus has both names on it. Can both of us claim HRA tax exemption proportionately. If so, will we assume 50 % rent for each or can we have a ratio of rent based on salary say 80 : 20%. Is this required to be mentioned in the rent receipt. Please advise. Look forward to a prompt reply
Hi Sandeep,
I am paying rent for two houses, 1 I stay and other my sister stays. Can I claim hra for any one house. I occasionally stay with my sister.
While joining the company I gave my sister house address as she will always be there if any communication s I get.
Now can I claim hra for the house that I rented.
I have submitted rent receipts for the HRA exemption in Income tax. Whether I need to submit the house rent agreement.
Dear Sandeepji,
As per Section 10(13A) of Income tax Act, 1961, as extracted, “Any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed38 having regard to the area or place in which such accommodation is situate and other relevant considerations.
Explanation.—For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where—
(a) the residential accommodation occupied by the assessee is owned by him ; or
(b) the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him”.
Rule 2A prescribes the quantum of exemption available, which will be the least of the following:
Bombay/Calcutta/Delhi/Madras
■ Allowance actually received
■ Rent paid in excess of 10% of salary
■ 50 per cent of salary
Other Cities
■ Allowance actually received
■ Rent paid in excess of 10% of salary
■ 40 per cent of salary
‘Salary’ for this purpose includes basic salary as well as dearness allowance if the terms of employment so provide. It also includes commission based on a fixed percentage of turnover achieved by an employee as per terms of contract of employment but excludes all other allowances and perquisites. In view of Explanation (ii) to rule 2A, basic pay, dearness allowance and commission are determined on ‘due’ basis in respect of the period during which rental accommodation is occupied by the employee in the previous year. Thus, emoluments of a period other than previous year are not to be considered, even though such amount is received (as well as taxed) during the previous year. Again, emoluments of the period during which rental accommodation is not occupied in the previous year are left out of computation. It is important to note that where rent paid is 10 per cent or less than 10 per cent of salary, no exemption will be admissible. Again exemption is denied where an employee lives in his own house, or in a house for which he does not pay rent.
Hi,
But if someone if not getting HRA component in his salary, mean to say that if some has lumpsum salary without any bifurcation into components (like HRA, Allowances etc.)
Is he/she still eligible to claim HRA exemption. If yes then how ?
Thanks in advance.
i am asst.professor in college.i do not get HRA. m leaving on house rent.can i take rebate to show my rent paid slip ?hope u revert positively revert
Salary definition for House Rent Allowance (HRA) for those who are under NEW pension scheme because Some where i found that
(Salary definition for House Rent Allowance (HRA)-For calculation of House Rent Allowance (HRA) you need to consider Basic Salary, Dearness Allowance(DA) and Commission (if paid as % of turnover).
Again in this case too DA need to be considered if it is forming part of retirement benefit otherwise not to consider and Commission also need to % of turnover.)
Iam a Govt servant.Iam living in my own House.My HRA is Rs.400.can you tell me how much amount eligible to deduct my IT purpose.
Is it mandatory to have the rent agreement registered to avail the exemption under HRA
Hi Sir ,
I have paid a lease amount of 10,00,000 for the owner is this amount tax deductible .
Can I apply this for tax exemption
hi,
i have relocated to a new city and will be staying in a service apartment for 1 year. can I claim that under HRA as rent?
Sir,
Due to some reasons I could not produce Rent receipts of Rs. 8500 while Form 16 is made by the employer. IS there any way to claim it back if the due date of IT retutns over? pls explain
i draw hra of rs 9405 working under nct delhi. i submitted to my office that i have taken accommodation for rs 12000 but i cannot submit the rent agreement and monthly rent pay slips because the house owner declined to sign the rent agreement with the PAN card number is disclosed. given these circumstances what is the house rent rebate i am legally entitled to. my basic salary is 19680.
I reside at Pune in rented house & pay INR 11000/- per month. Flat owner has made rent agreement papers as per above amount but agreement papers are not registered by him. Secondly owner accepts only cash & does not give rent receipt nor his PAN details. Can I claim HRA under section 10(13A) for exemption or it will be treated as a fraud case. Please suggest.
Hello,
What shall be the deductible amount in case rent paid is Rs. 1900.
As the amount as per above computation shall come to -100
Please clarify.
Hello
Can i claim Tax benefit for my family staying in another city due to my children’s education.
Regards
Debojit
Dinesh a Salaried person working as a designing engineering in Dell International Services Private Ltd in Banglore.His total salary for the year 2015 is Rs.10,35,540.00,Total HRA paid is Rs.2,45,640.00.Providend fund deducted from salary is Rs.54760.00.He has purchased a flat of Rs.32.00Lakhs by taking loan from bank.At the time of registry stamp duty and registry cost is Rs.2,49,570.00.
my question is HRA received to be deducted from salary or not and what is the taxable income.Total tds deducted on salary was Rs.55,340.for the year 2014-15.
Regards
Sir
I have changed mine job in Aug-15 from Delhi to Lucknow. In period Aug-15 to March-15 was having 2 house on rent one in Delhi and 2 nd at Lucknow.
Mine last employer count HRA till July-15 and present employer count from Sep-15, after submission of Rent agreement.
How to aavail Tax relaxation for the house rent amount paid, but did not considered by any of employer.
Dear sir
I am a central government employee.I am living in rented flat. In last FY I paid 2 lac as rent and got 77000 as HRA..Neither I have rent receipt nor PAN no of flat owner..Perhaps they are not willing. I have only rent agreement.. Can I take tax exemption on HRA..Regards
टेकचंद
श्रीमान जी, मैं किराए के घर में रह रहा हूं, यदि मकान मालिक के पास पैन नंबर नहीं है तो उक्त स्थिति में क्या् केंद्र सरकार के कार्यालय से किराए के रूप में भुगतान की गई राशि का हकदार हूं या नहीं, क्याा स्पीष्टक कीजिए
टेकचंद
श्रीमान जी, मैं किराए के घर में रह रहा हूं, यदि मकान मालिक के पास पैन नंबर नहीं है तो उक्त स्थिति में क्या् केंद्र सरकार के कार्यालय से किराए के रूप में भुगतान की गई राशि का हकदार हूं या नहीं, क्याा स्पीष्ट कीजिए
I reside at surat in rented house & pay INR 12000/- per month.
Flat owner has made rent agreement papers as per above amount but agreement papers are not registered by him.
Secondly owner accepts only cash & does not give rent receipt nor his PAN details.
So how should I claim for tax exemption.
Please suggest some option.
thanks
Sir,I am Teacher in Uttarakhand state education.My Basic Pay is 18520,grade pay is 4800,house rent allowance is 1920 and hill allowance is 480 per month.sir,my HRA is 40% of my grade pay.Sir I pay per month 3000 rent to my house holder.
so, How much rebate should I get in HRA and Hill allowance.
Sir,
I reside at Mumbai in rented house & pay INR 17000/- per month.
Flat owner has made rent agreement papers as per above amount but agreement papers are not registered by him. Secondly owner accepts only cash & does not give rent receipt nor his PAN details. So how should I claim for tax exemption.
Please suggest some option.
I am working in a central government organization and I am living in a house owned in wife’s name who is a housewife. My wife is charging house rent from me as the house was owned on her name. Can I get rebate on HRA in Income tax as I am paying for it.
Kindly suggest me soon with official letter/circulars.
Thanks!
If i m getting Rs. 25000 per month (total 3 lakh annul). My salary is fix . HRA and other allowance is not mentioned, can i get tax benifit for rent i m paying .
whether can I claim exemption for HRA if I have availed bank loan for construction of house and interest thereon claiming tax relief and also installments
dear sir,
Iam getting salary in all heads, like basic, da, ca not HRA.
iam paying rent of Rs 5000/- per month.
Will this amount of Rs 60000/-(5000*12) will be deducted under HRA.exemption.
as iam not geeting a any HRA from my employer
for HRA Exemption ?
fourteen month salary drawn in 2014 – 2015 which include salary of January 2014 to feb 2014 weather HRA can be deducted for fourteen months.
Thanks
I am a student studing in bangalore in a rented house .My mother is an employee she may get the tax benifit u/s 13A
r/sir
plz tell me is there any rule that the rented house must be situated within 8 km radius of working place
Hello Sir
i got to know from one of my friend that,for income tax exemption,house rent for 3000/month we should not submit receipt,is it true?
Please clarify on the above.
regards
Vish
Is it mandatory to submit rent receipt for exemption of HRA
26-02-2015
Dear Sir, My arrear salary for October 2013 to Feb 2014 was paid in April 2014, for which I had applied for relief. Further, I could not submit my rent receipts in the year 2013-14, but the same are submitted this year with a request to consider the same for HRA relief, since my final assessment against 2013-2014 is being done in this year as my salary for 2013-2014 for Octbee 2013 to Feb 2014 is released in april 2014.Please guide me. (1) Gross salary 2013-2014 = 6,70,000.00 (2) C.P.F deducted + 1,56,023.00 (3)Rent received + 1,02,768.00 (4) Rent paid =1,56,00.00 (5) (rent paid in excess of 10% of salary = 1,02,768.00.(6) IT deducted during 2013-14 0n 6 months salary i.e Rs.4,26,174.00, = 8419.00(which was without taking into account rent factors viz, rent received, paid etc. THANK YOU.
I am working in punjab but my family leave in Haryana. I paid rent in pujab as well as in Haryana. can I get the benifit on Total Rent paid or Higher Rent (Paid in Haryana)
I am working as a teacher and also my wife is working as a teacher.
I took home loan myself,my wife was signed surity. .I deduct home loan interest and principal amount in my calculation form.
My doubt is below
Can my wife get benefit on HRA?