- CA Sandeep Kanoi
- | Income Tax - Articles
- 28 Jun 2018
- 2,985,377 Views
- 453 comments
Calculate your House Rent Allowance (HRA) exemption know HRA exemption Calculation Formula and download HRA Calculator in excel format for easy calculation of exempt HRA Allowance out of Total HRA received by Salaried Assessee.
Employees generally receive a house rent allowance (HRA) from their employers. This is a part of the salary package, in accordance with the terms and conditions of employment. HRA is given to meet thse cost of a rented house taken by the employee for his stay.The Income Tax Act allows for deduction in respect of the HRA paid to employees. The exemption on HRA is covered under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules. It is to be noted that the entire HRA is not deductible. HRA is an allowance and is subject to income tax.
An employee can claim exemption on his House Rent Allowance (HRA) under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his employer. In order to claim the deduction, an employee must actually pay rent for the house which he occupies.
The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
1. Actual House Rent Allowance (HRA) received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.
Page Contents
- Meaning of Salary for calculation the exemption of HRA
- Examples for calculation of exemption/deduction of HRA
- Frequently Asked Questions on House Rent Allowance (HRA):-
- 1. How is HRA accounted for in the case of a salaried individual and a self-employed professional?
- 2. What are the dependent factors in calculating HRA for the salaried individual?
- 3. Can I pay rent to my parents or spouse to avail HRA benefits?
- 4. Do I need to submit any proof for my HRA claim?
- 5. Can I simultaneously avail tax benefits on my home loan and HRA?
- EXTRACT OF RULE 2A OF INCOME TAX RULES I.E. HRA EXEMPTION RULES
Meaning of Salary for calculation the exemption of HRA
- Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
- Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.
Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.
1. Basic Salary – Rs. (5000*12) – Rs. 60,000/-
2. Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
3. House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
4. Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
Calculation
The minimum of the following amount shall be exempt
- Actual HRA received (2000*12) – Rs. 24000/-
- Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
- 40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
Frequently Asked Questions on House Rent Allowance (HRA):-
1. How is HRA accounted for in the case of a salaried individual and a self-employed professional?
HRA (house rent allowance) is accounted for in the case of salaried people under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules (HRA Exemption Rules). On the other hand, self-employed professionals cannot be considered for HRA exemption under this act, as they do not earn a salary. However, they can claim benefits on the house rent expenses incurred under section 80GG, which resembles section to 10(13A) but is subject to certain conditions.
2. What are the dependent factors in calculating HRA for the salaried individual?
When you are calculating HRA for tax exemption, you take into consideration four aspects which includes salary, HRA received, the actual rent paid and where you reside, i.e., if it is a metro or non-metro. If these aspects remain constant through the year, then tax exemption is calculated as a whole annually, if this is subject to change, as in a rent hike, pay hike or shift in residence etc., then it is calculated on a monthly basis. It is usually rare for all the values to remain constant in a financial year.
The place of residence is significant in HRA calculation as for a metro the tax exemption for HRA is 50% of the basic salary while for non-metros it is 40% of the basic salary. This holds true especially when you work at a metro and reside at a non-metro. In this case, your city of residence only will be considered for calculating your HRA.
3. Can I pay rent to my parents or spouse to avail HRA benefits?
You can pay rent to your parents, however, they need to pay tax on the same or account the same in calculating their taxable income.
On the other hand, you cannot pay rent to your spouse. In view of the relationship when you take up residence together, you are expected to do so and hence such a transaction does not bear merit under tax laws. Sham transactions can only spell trouble under scrutiny, so steer clear of these.
4. Do I need to submit any proof for my HRA claim?
You need to submit proof of rent paid through rent receipts, for which only two need to be submitted, one for the beginning of the year and one towards the end of the financial year. It should have a one rupee revenue stamp affixed with the signature of the person who has received the rent, along with other details such as the rented residence address, rent paid, name of the person who rents it etc.
5. Can I simultaneously avail tax benefits on my home loan and HRA?
The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as 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 your home loan. This could be the case if your own home is rented out or you work from another city etc.
EXTRACT OF RULE 2A OF INCOME TAX RULES I.E. HRA EXEMPTION RULES
[Limits for the purposes of section 10(13A) .
2A. The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause (13A) of section 10 shall be—
(a) the actual amount of such allowance received by the assessee in respect of the relevant period; or
(b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or
(c) an amount equal to—
(i) where such accommodation is situate at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and
(ii) where such accommodation is situate at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period,]
whichever is the least.
Explanation : In this rule—
(i) “salary” shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;
(ii) “relevant period” means the period during which the said accommodation was occupied by the assessee during the previous year.]
Image courtesy of Salvatore Vuono at FreeDigitalPhotos.net
(Republished with amendments)
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Mr. A.k verma was working as manager at 25000 p.m. with M/s Hindustan photo, Jammu. He was receiving 4800 p.m. as D.A. and 6000 p.m. as H.R.A. He stays in his own house. He received 14000 as travelling allowance and he could spend only 12500. His salary accrues on 1st day of every month. He retired from service with effect from jan.31, 2021 and received the following amounts.
1. Retirement gratuity 462400. He retired rendering 34 years service and his salary during 2020-21 was 25000 p.m. [Not covered under gratuity act,1972]
2. His pension was fixed 12000p.m. he gets 3/4th of his pension commuted for a lump sum of 510000.
3. He received 224000 as refund from recognized provident fund. Half of it consists of his own contribution plus interest thereon.
4. Leave encashment of 125000 being 5 months’ salary received on 31-1-2021. He was allowed one month leave for each year of service.
Compute his salary income for the previous year ending on March 31, 2021.
Sir,
I am retired Accounts Officer from BSNL from 31-01-2021. After retirement I stayed in departmental Quarters from April 2021 to December 2021 and paid Quarters rent nearly Rs. 212000/- for the 9 months. I have bank statements paid to BSNL department in Hyderabad.
In this regard I want to know the claim for HRA exemption regarding submission of bank statements while E filing returns of Income Tax for the F/Y 2020-21. kindly clarify which documents i have to upload for claiming HRA exemption .
– A. LAKSHMINARAYANA , ACCOUNTS OFFICER (RETD) BSNL HYDERABAD –
Sir,
Kindly answer this query for me and the readers.
Person Kumar is a Central Government employee. His basic salary per month is Rs.77800/- per month. He receives NO HRA as he is in Central Government Quarters. But in his Form 16 A, under form 12BA the entire HRA received is added as perquisites. That amount works out to Rs.2,24,000/- per annum. Thus, he did not receive any HRA, but as he lived in Central Government Quarters the HRA foregone became perquisite. Is there any exemption for him as available to any other citizen? Kindly inform as this issue does not appear to be discussed here. It is an important point as due to reintroduction of standard deduction and new tax regime, we all will request for your kind clarification. Thanks.
I am HP state govt. employee.
My basic pay–18320
DA——35680
HRA received–600/month
But rent paidby me–5000/month
What would be my HRA exemption under the income tax rules.
I received HRA Rs. 600 per month but I paid Rs. 5000 thousands on rent .In this case what is the amount for hra rebate
If a central government employee transferred in mid of the month from ‘X’ class city to ‘Y’ class city, at what rate his monthly HRA will be calculated for this month?
Suppose an employee is staying in a quarter and receiving HRA Rs.5000 and also same HRA amount is deducted from Gross Salary. What will be the HRA exemption for the employee.
I’m a central government employee, I’m living in ordnance factory board guest house on paid basis approximately 900 rupee per month. My Basic pay is 27900. I’m eligible for HRA or not?
Hi Sir, I’ve stayed in rented only for 2 month in the last financial year and later moved to my own house. How to calculate HRA for those 2 months. Below are the details for those 2 months
Monthly rent 7000
Base salary per month 17360
HRA per month 8680
Should da arrear shall be included in calculations of hra
I am staying in rented house of rent 15000/month. My institution has been paying eligible rent of 11000/-for my rented home and extra 4000 payed by me. They are not paying hra for me. can I claim HRA in tax exemption
I have recieved arrears of salary (basic, da, hra) of previous years in fy 2018-19. Whether this is to be included/excluded for calculating hra exemption?
If I am paying rent for multiple house properties occupied by me and my parents (dependents), then, can I claim exemption u/s 10(13A) regarding rent paid for multiple house properties.
I got only 6 month hra Rs.30797 in F.Y. 2018-19. My Basic is Rs.64100 and city is Z class. I have paid actual Rent Rs.36000.am I eligible for hra exemption? if yes then how much?
Sir I availed Govt qtr and also i got HRA for my family who leave far away from my place of posting.
Sir whether HRA what ever got towards my family will be deducted from gross salary after putting rent receipt on TDS
VERY NICE
My Taxable salary in 518920
Rent 84000/p.a living in pune for employement but in FORM16 employer not shown HRA how much can i claim HRA
what is the procedure for calculation of Income Tax by adding rent receieved from house let out along with salary/pension income
Sir,
Thanks for the valuable information. I understand the concept of Rent paid to parents is allowed but my question is that in which mode of payment is allowed under income tax mean rent paid by cash, cheque or bank transfer etc allowed for deduction
Sir,
I have taken loan from my employer at 0% interest (10 years) and I am paying the Tax on the differential amount of Interest rate with SBI as on last date of the FY. Please confirm can I take any benefit under Income Tax on the differential Interest amount calculated or tax part on the Interest Calculation which is being added in my Income and on which I have to pay Income Tax.
Beside this I am also claiming HRA as per rules.
Regards,
I joined government job in August 2018. Can I HRA of 1 lakh for these 7 months or Is it like 1 lakh for 12 months or for financial year with any number of months?
I am a state government employee and now our salary has hiked to equivalent central government employees with retrospective effect. If my arrears calculated and i got HRA arrears. The difference HRA paid and Arrears received. under this statutory deduction is compulsory or wave up available.
I wish to pay ret to my mother (she is non working) ,
the residence for which I need to pay rent is co -owned by “mother and father” ,
can I pay my rent to my mother only , as she is half owner of the property
Dear Sir,
The article is very nicely explained, but I have a question If I am already availing the benefit u/s 24 amounting 200000/-, Should I take advantage of 50% HRA paid by my company.
What about central government employees? Are the same rules applicable? Kindly, at the earliest, guide through with the exemptions available for central government employees.
SIR MY BASIC WAS RS 20000.00 AND DA OF RS 8650.00 AND HRA WAS 2000.00 AND I AM PAYING THE RENT RS 4500.00 P/M
NOW I DO NOT WANT CLAIM SEC 10(13) BUT I WANT TO CLAIM UNDER SECTION 80GG
10% of Basic salary + DA was higher than HRA paid. Government salary. HRA Exemption eligible or not?
Rent received. : 20,100
Rent paid. : 45,000
10% of Basic + DA : 53,000
we are manufacturing Tool and dies for OEM(s) but as a contract the cost of tooling is to be capitalised at our own. only components will be sold. Now the tooling is our assests till business carried, after closure of transaction being our property we have liberty to dispose off.Now before capitalization how can be Generate GST invoice and pay GST. Please suggest method of capitalization and invoicing system.
regards
R K Mishra
my employer says that contribution of NPS by the employer is to be added in the salary. after adding in the salary deduction u/s 80c will be admisable on both the parts (employer and employee) Is it wright or wrong ?
Read carefully the article in respect of HRA calculation and update/ claim for HRA exemption ,
writer has given clarified in details .
I have read a few of your articles on income tax exemption s for individuals. You have written each item in detail and have linked earlier articles with each other. Great work. Keep it up.
Sir,
How to calculate HRA ..Our Pm Salary is Rs. 5Lacks (Basic + DA) + his Hra is 199000 and he is paying rent for his house is Rs.1.20 lacs for 12 months.
Kindly how much hra is allowed to my PM
I m living in rented house and i have salary income but my compeny can not give me HRA and it does not saws in form 16 so can i claim my rented house exp.
Instead of staying in house, I propose to put up in a service apartment/hotel. Is the amount paid to the service apartment/hotel claimable as exemption?
i have stayed in house on rent only for 4 months in the year 2016-17 and hence paid rent of 4 months. so to get the tax benefit on rent paid, calculation to be done considering whole year or only the duration mentioned above? please reply
Sir
While calculating the Rent Paid in excess of 10% of salary, I am getting a negative value.
My basic pay in a month is 177100. I am paying 15000 as rent per month.
What is the methodology to adopt for calculating the amount exempted under HRA. Please advice.
Sir,I am a state government employee.Ihave taken Housing Loan on 2012.I am working out of station to my own house.I am residing in rented house of Rs.6000/-pm.My own house was not given rent purpose.
Hence,i have eligible for exemption house rent and housing loan interest ? Please clarify.
My basic pay is Rs.26360/-pm Da Rs.34795/- pm iam paying a rent of Rs.42369/- per annum for the govt quarters occupied and receiving Rs.3200/- pm towards House rent allowance How much i get hra rebate
Reply
– See more at: https://taxguru.in/income-tax/house-rent-allowance-hra-taxability-and-workingcalculation-of-taxable-hra.html#sthash.sFm8BH6T.dpuf
iam paying a rent of Rs.42369/- per annum for the govt quarters occupied and receiving Rs.3200/- pm towards rent How much i get hra rebate
iam occupying govt quarters and iam paying Rs.42369/- towards rent and iam receiving Rs.3200/- as rent per month. How hra rebate can be claimed
Sir,
I am living in a rented house.As of now I need no HRA exemption as my income do not cross the taxable limit after considering 80 C and 80 D exemptions.Please tell me whether I need to submit
rent receipt now to avail HRA exemption in future in case of revision in salary.
Hi sir…I need one information…I am working in an institution for 11 and half months…I am paying 8000/month…can I claim for 11and half months or complete 11 months
I am in occupant of a govt quarter and for maintainence of my family I kept them in a rented house at other state for which I am paying rent.
I do not receive any house rent. Can I claim HRA.
I am govt. employee living in govt. quarters so not getting HRA
1. Parents are living in rented house
2. Spouse living in rented house
3. Having own house
at different places
can i get exemption under 80GG
or any other source ?
Hi, I have a quarry. After 7th pay commission, my monthly basic salary is 47000 approx..DA is 0, HRa is 1820. I am paying Rs. 5500/-per month house rent.. I am living in z class city. What would be my HRA exemption under the Income Tax Rules.. Please
ENNGA STREETLA ORUTHAN IRRUGA AVAN NAME KADAR. AVANNUKKU ORU HOUSE 1.25 LAKHS VARRUMANUM VARRUTHU SIR . AVANNUKU INCOME TAX ILLLAYA. STREET NAME . MELA CHINTHAMANI
Is there a rule that if my rent claim is more than 15000 per month my landlord also should file ITR compulsorily ?
My parents stay in rented house, and my sister pays the rent for this house. However, my sister stays few days with parents and few days of week is staying with her husband in their own flat in same city. Can my sister claim HRA tax benefits?
I have stayed in Govt quarter till june 2015,and feb
2016 onwards i am staying outside by rented house.So whether i can get tax exemption for three month for last financial year til march 2016? and how i can claim for that? becoz there is no option in online eflling tax return? pls tell me?
I have stayed in Govt quarter till dec 2015,and january 2016 onwards i am staying outside by rented house.So whether i can get tax exemption for three month for last financial year til march 2016? and how i can claim for that? becoz there is no option in online eflling tax return? pls tell me?
(HRA) I have job in Himacha Pradesh and paying rent 96000 per year. My family staying at Gujrata and i am paying 120000 rent per year. Can i claim both rent as HRA?
What wiil be the basic pay for a Pilot ?
Will it include only basic pay
Or will it include other allowances?
My friend is a central govt. employee but his wife is state govt. employee, then what would be the house rent rule for their?
I don’t think relocation is covered in the non taxable category Like LTA and medical. Since the company paid you extra money they would tax you accordingly.
HRA Issue: There must be quite a lot of people who would come under the category that I am going to discuss. ie. those who stay in their own house and do not pay rent but receive the HRA from the company where he / she works. In this case they are not eligible for any deduction – right?
Now my question is what about the society charges they pay. what about the municipal corporation tax. Why these should not be treated under or as rent or some sort of rebate should be provided. do you agree?
is there an upper cap (maximum tax free HRA one can avail?)
Hi
I do not own house but live with ma parents..we have taken loan for home on the name of mother. I do contribute in home loan repayment . Can I get any deduction under income tax act.
Please suggest any other alternatives if available.
Thanka
Kamlesh
my Room Rent is 1800/Month. now the Account Dept. asking for Pan card Copy of land load. and land load Don’t this. Does pan card Copy is Mandatory? Kindly Suggest.
I too has the same doubt..
can any one please help me out..
is the Rent paid by the assesse for staying of his dependent can be included for HRA exemption
hello,
Please help us on How to Save the capital gain Tax
I purchase flat on 24-03-2003 purchase cost of flat is Rs. 6.37.150
I sold that flat in feb 2016 sale cost is 45,00,000
Indexation cost in 2002-03 447 and in 14-15 1081
637150*1081/447 = 1540848
So Long term capital gain is Rs. 29,59.152
what should be done to save capital gain tax of Rs. 29,59,152
Hi,
Please see the below details and help me out.
Home loan taken on August 2015, In December-2015 I got the possesion of my new house.
Earlier I was living on rent, now moved to my new house in Jan 2016
Can I claim tax benefit on: 1. HRA for period April-2015 to November-2015 (8 Months) 2. Sum of Principal Amount from the EMI which I will pay from December-2015 to March-2016 (4 Months)
3. Sum of Interest Amount from the EMI which I will pay from April-2015 to March-2016 (12 months),
Date of admissibility of HRA in case of late application
Is it necessary to submit copy of PAN card of the owner or PAN number is enough?
do we need to submit(mandatory) the copy i.e xerox of PAN of my owner or PAN card number is enough.
of course , you will get HRA exemption but surely less than what is shown on your salary slip. The calculation is above.
I am a fixed salaried person. In my salary sleep only final figure of salary is mentioned. How can I claim House Rent. I am leaving in rented house.. Kindly guide me.
By your logic.. what ever money that you spend, should be non-taxable.. That is not true. Relocation is taxable if it is getting reimbursed.
My Annual HRA is 100,000 so I am entitled monthly HRA of 8333.33
I am staying in PG accommodation where I am paying 6000/month which is less than the HRA what I get from my company.So if I show 6000/month rent will I get tax exemption?
Can I claim HRA TAX benefits along with Home Loan ? As I am staying in different city on rent alone i.e. Delhi and my family is staying in my Home in a different city i.e. Gurgaon, which is registered to my wife name. My wife is house wife and she is primary applicant of Loan and I am co-applicant. Please advise.
Hi ,I am working in Lucknow but my family is staying in a rented accommodation in Delhi .Can I claim HRA as I am also staying on rent in Lucknow
Is PAN card detail necessary for HRA deduction
s PAN details of landlord compulsory for claiming HRA ?
I was in Noida and joined new company in PUNE. During relocation expense I spent 70000/- almost from my pocket including Household shifting, Travelling with family from Noida to PUNE by flight & Car shifting.
Company promised me to reimburse the amount and after I joined I submitted the actual bills and statement. With in 2 months, I got full payment.
now company is putting the reimbursement paid amount as my INCOME.
I believe it should not be TAXABLE, because I paid from my pocket which is already tax deducted source and now when I got my money back then again it cannot and should not be taxable.
For justification, I gave the clause of 10 (14) 2BB & 17 (3) of Income Tax 1961-62.
I have stayed on rented house for 2 or 3 months before shifting to my house. So can I claim for those 2, 3 months and Home loan interest both. I have got the possession in march 15
Can I apply for tax benifit home loan availed from two different bank for same home. One is home loan and another is home repairing loan.
my House rent is 120000 and i paid Rs 140000. my House rent Amount 120000 is exempt for income tax.
hi ,
I have the pan card of my landlord , but i dont have the photocopy of the same , is that suffice to submit the documetn with the photocopy of the landlord .
If pay rise is given with retrospective effect there by amounting to arrears HRA payout for the period which has already lapse, i.e. for instance payrise given effective Jul’15 in Oct’15 (3 months arrears)should arrears HRA be reconsidered for calculating monthly HRA for the periods Jul’15 to Sep’15 which was already calculated earlier.
Our Kids stay in our own house. I stay with my wife in rented house. kids stay separately as it is small house for study. Can I avail HRA exemption/deduction ?
please reply
Can I avail HRA Exemption/Deduction for me as I stay with my wife in rented house. Our Kids stay in my own house. we stay separately due to Kids study as it is very small House.
i did not see anything named as dearnes allowance in my CTC. in that case how do we arrive at an amount as salary by looking at the CTC
HI ,
I dont have own house,I am staying with my father ( as house is on his name ) & paying rent of 12000 to them ,there by showing the same as income in father’s IT return ( income from other source ) .
I have two questions as below
1 ) Now I have also taken mediclaim policy & paid premium of 9000 INR for my parents to whom i am paying house rent .Now can i take deduction of 9000 TINR the same in sec 80 ( parents are non-senior citizen ) ? Please advice .
2 ) We all have also travel then can i put parents tickets to claim LTA exemption ?? please advise separately.
Thank you ,
Can I claim HRA for my parents living in a rented flat, & I am living in employer’s colony
Have taken an employment with a U.S company. It is currently not registered in
India.
However I work from India and my employer pays my lump sum salary in Indian currency into my Indian account.
Given that my income is in the tax bracket, wanted to know on the tax implications and how can I get tax benefit ,HRA,MADIClAM
Hi Sir, I’ve received a salary breakup details from an organisation mentioned that HRA is 3 times of basic salary. By seeing this structure itself I got a doubt that is it possible that HRA is more than basic. And in this case HRA is three times of basic.
Can you please clarify the doubt that “Is HRA more than basic is allowed?”
Hi, If I ve joined a company from mid of a financial year(say for 6 months only), then in the above calculation should we considered the actual basic salary received(i.e for 6 months) or should we consider the annual basic salary(12 months)?
Regards
Gayana
Dear sir,
I am residing in a Government allotted quarters. I will get HRA in my salary but my entire HRA will be deducted again under deductions and it will go back to Government. Since HRA is completely deducted from my salary, am I eligible to claim exemption for complete HRA? If yes, please mention the reference section under which I can claim exemption
Thank you
Please provide HRA exempted amount?
if i have own house can i take HRA from company..?
Hello,
1. I am residing in a rented flat with rent of Rs. 12000 p.m. with my parents. My current basic is 23000 p.m. and hra is 11500 p.m.
2. I have booked a house with home loan. EMI shall be 25000 pm with 18000 p.m. being interest. Possession shall come in december’15. My mother is a co-owner in the property and my father is working with a private company.
3. I have changed a job and shall change the city as well from Octoberr’15. I will be residing in a rented flat with house rent of Rs. 12000 p.m. and my salary will be basic 37565 and hra – rs. 18783 per month. The owned flat in current city shall be occupied by my parents.
Can you help me with the tax planning for maximum HRA and housing loan benefit
Sir If my Basic Salary is 12000 and HRA 4000 and I am paying actual rent of rs 8000 per month what would be the deduction i can get from income tax. Please reply so that i can file my income tax return accordingly
Basic Salary :- 16,666.00
HRA:- 20,833.00
1.How much(max) amount i can declare for hose rent.i am staying in NCR noida.
can i get the tax benefit on 13k per month rent(156000/-)
2. After declaring of 1lac 50k in 80c still 1,397.00 is getting deducted as income tax. what i need to do so it not get deducted.
Hi,
I bought a commercial property whose value was above Rs.50 lac & I paid 1% TDS on behalf of the seller on my share, which is reflecting in Form 26 AS.
Now I am filling online return, please could you guide me where do I need to mention this TDS paid amount while filling online return.
Thanks in advance.
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hi,
the author keeps ignoring multiple queries regarding HRA claim for people paying rent for 2 houses at the same time – one being self occupied, and another being occupied by parents (in the same town, or in other town).
There is no clarity on this subject in any forums.
Request the author, or anyone who knows to reply conclusively.
Many Thanks!
MY TOTAL INCOME FROM SALARY is997127 which after 80cc deductionis868359. Ipaid 36000 as house rent How much HRA EXEMPTION Ican get?
i am staying in house coowned by my parents. can I claim HRA by paying rent to them?
Hi
Can you please let me know whether a salaried person can claim benefit of HRA exemption at the time of filling his/her return.
Issue is that a Mr.X has left a organisation while leaving he had submitted his HRA proof to HR department. HR doesn’t consider that proof but deducted & paid the tax on the whole salaried income & issue the form 16 & 26AS.
Now Mr.X can claim HRA exemption while filling his return.
Can a Person pay rent to his children? Which ruling disallow paying rent to Spouse?
Sir,
I have built home taking company loan, at Bardoli 35 Kms. from Surat. I am living in Surat where my office is situated. Up till I lived in Company Leased Agreement. Now I discontinue the company lease agreement & paying rent of Rs. 6500/- Now I would get Approx. Rs. 5000/- (30% of Salary) WHAT IS TA IMPLICATIONS?
SB Mahajan
sir i am from jhansi . now jhansi comes in Y class cities .but my factory BHEL SITUATED 20 KM AWAY FROM JHANSI CITIY .CAN BE GET 20% HRA OR NOT
What is T&R facility which cost is deducted from my gross salary
Hi,
I am paying rent for two houses, one for myself and one for my parents. I was wondering if I could claim HRA tax rebate for both the houses? Any suggestions from you would be very valuable.
Many thanks…
Hi, I’m Pallavi and I have a question. Could you please tell me if i can claim exemption on HRA? The situation is I stay with my parents in a rented house and my father pays the rent. Can I still claim exemption on HRA??
IF so then what does my father have to do while filing his tax returns?
I’m Quite new to all this.
Dear Sir,
This is very helpful article. I have some doubts. I received the arrears in the same financial year. Its incremental DA. Will it be included for calculating the HRA deduction?
I received once in April and 2nd time in October.
Thanks.
Mr.R.K.Agarwal: Yes; you can claim the HRA exemption in respect of the House Rent you are paying. Regarding the own house you are not using you can claim the exemption if you are having rental income from that property. No exemption you can get if the property is un-used and idle.
Murtuza: No
Hi,
My family resides in Bangalore and I am paying rent over there. I have recently got a new job and have moved to Mumbai where I am staying with my parents but my wife and kids continue to stay in the rented apartment in Bangalore.
Can I claim HRA exemption for that rented apartment in Bangalore or not??
Sir,
I am paying rent for hired accomodation in non-metro city. Also I am getting possession of a purchased home in the same town but not intending to reside in the same being in remote locality.
Can I claim HRA exemption alongwith interest & principle exemption under section 80C and section 24.
Pl reply either on above e-mail ID.
Thanks and Regards
I am working as a state government employee and my basic pay is Rs. 20740.I am residing in government rental housing. I am not getting my house [email protected]% =3111 per month. Can I calculate my income tax excluding this HRA?
Sir
I am getting 60880/pm salary (Salary break up Basic-36528/-, HRA-18264/-, Conveyance-3044/-, Medical-3044/-) & actual Rent Paid of Rs.8000/pm
How many amount will exempted in Income tax
The HRA Slab defined by the Govt is absolutely looting money from middle man like me.
The calucation as per Govt HRA Slab as under:
Basic Salary 300000
HRA 150000
40% HRA on Basic Salary 120000
Actual HRA Paid 96000
Exemption available 66000 Being Non Metro
Taxable HRA 84000
Correction required on the above Slab as under:
Correction required in Slab
HRA 150000
Exemption available 96000 Minimum of HRA, 40% on Basic Pay & Actual HRA Paid
Taxable HRA 54000
If I go for calculation of HRA benefit available, I understand that I am getting benefit only for Rs. 12000/- as HRA Exemption as per below calculation
Actual HRA Paid Rs.96000/-
Taxable HRA is Rs.84000/- instead of Rs.54000/-
Benefit what I am getting from HRA is only for Rs.12000/- on furnishing House Rent Receipts, instead of Rs.42000/-
According to above correction, the rufund of TAXABLE HRA should be as under:
More Taxable HRA 30000 Excess Tax to be refundable
If Govt is not able to provide this, then the benefit of 80C to be enhanced from 150000/- to 250000/- considering increasing expenses especially on Vegitables, MILK, Tution Fees as every year Schools and Colleges are increasing Tution Fees but taxable limit is only Rs.24000/- per two children if I have to pay Tution Fees more than Rs.24000/- for an example Rs.36000/- per two children.
The HRA Slab defined by the Govt is very horrible for middle man like me.
The calucation as per Govt HRA Slab as under:
Basic Salary 300000
HRA 150000
40% HRA on Basic Salary 120000
Actual HRA Paid 96000
Exemption available 66000 Being Non Metro
Taxable HRA 84000
Correction required on the above Slab as under:
Correction required in Slab
HRA 150000
Exemption available 96000 Minimum of HRA, 40% on Basic Pay & Actual HRA Paid
Taxable HRA 54000
If I go for calculation of HRA benefit available, I understand that I am getting benefit only for Rs. 12000/- as HRA Exemption as per below calculation
Actual HRA Paid Rs.96000/-
Taxable HRA is Rs.84000/- instead of Rs.54000/-
Benefit what I am getting from HRA is only for Rs.12000/- on furnishing House Rent Receipts, instead of Rs.42000/-
According to above correction, the rufund of TAXABLE HRA should be as under:
More Taxable HRA 30000 Excess Tax to be refundable
If Govt is not able to provide this, then the benefit of 80C to be enhanced from 150000/- to 250000/- considering increasing expenses especially on Vegitables, MILK, Tution Fees as every year Schools and Colleges are increasing Tution Fees but taxable limit is only Rs.24000/- per two children if I have to pay Tution Fees more than Rs.24000/- for an example Rs.36000/- per two children.
Mr. Saurabh: Self employed and those who are not in receipt of any HRA can claim HRA exemption to an extent of Rs.2000 pm. A flat rate.
Hi,
I am a self employed personnel, staying with my dad in a property which is not under his name but its part from the family settlement. Now can I pay rent to my dad, if yes then this income will be considered as his income?
OR There is any limit which I can pay and He may not have to take that amount as income? Please advise.
Thanks
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Contact for Tax Calculations & Tax Saving
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If HRA is received for part of a financial year and rent is also paid for the same period. (nine months for example). How would the 10% of salary be calculated?
How would the return be filed to claim a refund in this case?
Can Husband paying rent in two separate location for wife and him self .
Can he claim separately
Employee worked first 10 days in one company and hra received proportionately and 15 days another company(Company changed ) and hra recs proportionately. My question is can he claim hra in both the companies proportionately for that month.
Months Basic Pay AGP DA TA HRA DA-TA GROSS ATD* NET Salary
April 15600 6000 21600 3200 6480 3200 56080 2000 54080
May 10568 4064 14632 2168 4390 2167 37989 2000 35989
Ju+July 35729 13742 49471 4129 14841 4129 122041 4000 118041
Aug 15600 6000 25363 3283 6480 3282 60008 2000 58008
Sep 15600 6000 23112 3200 6480 3424 57816 2000 55816
Oct 15600 6000 23112 3200 6480 3224 57616 2000 55616
Nov 8840 3400 16121 2037 3672 2165 36235 2000 34235
Dec 0 0 0 0 0 0 0 0 0
Jan 12580 4839 18638 5341 5226 0 46624 0 46624
Feb 15600 6000 23112 3200 6480 3124 57516 0 57516
March 15600 6000 23112 3200 6480 3124 57516 0 57516
G.Total 161317 62045 238273 32958 67009 27839 589441 16000 573441
ATD*= Advance Tax Deducted by employer
HR Paying 8000 pm (8000*12)=96000
PPF Saving =100000
Calculate net tax payable in this year
IF 10% OF SALARY(BP+DA) IS GREATER THAN ACTUAL RENT PAID. IN THIS CONDITION HOW CAN I GET HRA EXEMPTION UNDER I.T.ACT ?
My employer is seeking original rent receipts for considering exemption under section 10(13A) for the purpose of deduction of tax at my salary. I have produced copies of rent receipts but he is not satisfied and has told me that exemption can not be considered else I produce original rent receipts. However, in my view, if I furnish original rent receipts to the employer and my case comes under scrutiny in future, how shall I be able to furnish the originals to the department. Please guide me.
I have a query in regards to the HRA claim for different cities. My company’s base location is Bangalore and I am working on a project which is based out of Korea. The project is such that we travel for 3 weeks in Korea and spend 1 week in India, during that course of period I generally go to Delhi either on vacation or at times I work from Delhi (from home) as well. The company doesn’t have any office in Delhi.
Can I claim HRA from Delhi considering the income would be shown under my landlord’s name as other income since I am not claiming it for Bangalore?
Mr.PPA: Yes.
i hate the subject
Hi,
As per my company policy for HRA exemption that, i need to submit rent agreement for exempting the tax and my rent is less than 1 lacs per annum.
So if it not mentioned in form 16 during filing TDS, Can I file HRA in Tax return.
thanks,
P P
Dear Suchanthi,Both are possible. When you are getting HRA and not paying any rent means you are staying in self-occupied property and HRA is taxable. Rebate u/s 24B is the negative income arising out of interest payment net of rent received if let out, and whole of it if no rental income.
Sir,
My question is can I avail both HRA and Interest if both houses are in the same locality (in the same apartment).
Do I need to show the house on which I am paying EMI as let out to avail the deduction of interest?.
MrAnup: If the rent paid in excess of 10% of salary is negative, whole of HRA received is taxable. The meaning of the rule is 10% of the salary one is supposed to pay as rent. In case you are not paying even 10% of salary as rent whole of HRA is taxable.
Sir,
H.R.exception limit illustration as given in your post as under
X has received following amount during the previous year.
Basic Salary – Rs. (5000*12) – Rs. 60,000/-
Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
Calculation
The minimum of the following amount shall be exempt
Actual HRA received (2000*12) – Rs. 24000/-
Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
Here some basic data of Mr. Y received from employer. please calculate H.R. exemption limit of Mr.Y.
Basic salary:- Rs.20,180 x 12 month= Rs.2,42,160.
D.A.:-Rs. 11,503 x 12 month = Rs.1,38,036.
C.A.:- Rs.325 x 12 month = Rs.3,900.
The minimum of the following amount shall be exempt in case of Mr.Y.
Actual H.R. received by Mr.Y : Rs.2,000 x 12 month = Rs.24,000.
Rent Paid in excess of 10% of salary(Basic + D.A. + C.A.)=
[Rs. 24,000 –Rs.38,410] = (-) Rs.14,410.
40% of Salary – Rs.1,53,638.
Since figure of Rent Paid in excess of 10% of salary(Basic + D.A. + C.A.) is negative , what amount to be H.R. excepted of Mr.Y.
Mr.RBRai, You are eligible for double HRA or accommodation in lieu of HRA.? Civil servants are eligible for extra facility and same may be true for you. Whenever you occupy govt accommodation no HRA is paid.
Sir,
I am an officer in Assam Rifles under Ministry for Home Affairs. Pay and perks is at par with the other Central Police Organisations. This organisation has been fighting NE insurgency since from its inception. NE Region of the country is our home and hearth. We seldom get posted to other part of the country. I am presently posted in Dimapur, Nagaland since from last one year and a half. My wife stays at home because of there is no one to look after my house if she joins me. I have not been occupying my authorised government accommodation e.i. Type IV quarter in my present station instead I have been staying in a Single Officer Accommodation on a sharing basis with another fellow officer. Do I qualify to claim HRA? If, yes, then under which particular rule it is covered. Waiting for your enlightening. Regards!
I have a query :-
Sir I’m in state govt. teaching department. I’m posted in a interior hilly village. So my family(Housewife+children) lives in the city on rent for education of children. I have a room in village too. So can I get the HRA exemption for the rent paid by me in the city. Please also guide about the categories of cities other than 50% and 40% of salary for the exemption.
Mr.Bhuwan: If you are paying rent more than 10% of the salary, you can compute the exemption amount Else no exemption.
MY ANNUAL SALARY RS410000 INCLUDING DA.HRA RECEIVED ANNUAL RS 22080.ANY AMOUNT OF HRA EXEMPT?
my annual salary=[17000+da18000=35000*12=410000,Annual hra received 1840*12=22080 any hra exept?
Can pensioners avail hra exemption?
Mr.Ravikumar, Use the thumb rule. Whatever is used for granting HRA, use that component to compute exemption/rebate. When the HRA is granted based on percent of Basic, basic pay is the salary.
i am comes under the New Pension Scheme(NPS) for the calculation HRA exemptions what will be the salary includes? either take basic+DA+Grade pay or only basic? please clarify this
Thank you for your reply
Mr.Ashish Jay: As are an employee of Thane no need to change the filing of IT to Gwalior. Your income is from Thane. 2). If you are getting HRA and have the authority to work from home away from Thane, and if your employer is satisfied with the expenses towards rent at Gwalior he can allow exemption as per Section 10(13). If you are not getting HRA you cannot claim any exemption on rent.
I also wanted to know that before shifted to Gwalior i am paying income tax under Thane juridiction. as my office in Thane and now i am leaving in Gwalior which is my area of juridiction to pay tax.. and so My AO(Accessing Officer) is from which city (ward). Thane or Gwalior ?
Sir,
Till last year i am staying in rented flat in thane and company also in thane. They gave me HRA.
But since 1st April 2014, I am staying in Gwalior with parents and give rent to parents and my office still in Thane. I am work from home. Do i entitled to received HRA from employer? As i am not in the same city where office is … Is there any such rule that rented house and office must be in same city?
Mr.Rajesh Sheel: For claiming the rebate you must be staying in the rented house. Also you are already in rent free accommodation. You cannot claim rebate strictly. Assuming you dont have rent free accommodation and paying rent and staying in the house your claim will be rent minus 10%, i.e. rent received which works out to Rs.2500 – 1791.
reply
Sir, I am working in PSU and my Basic Pay w.e.f. 1/4/2014 till 31/03/2015 is Rs.17910/-. I am residing in non-family accommodation (rent free) of my company and company is recovering Rs.100/- as quarter recovery for this accommodation. Being residing in non-family accommodation (rent free) I am getting House Rent @10% = Rs. 1791/-Per Month from the company. But, regarding my child education my family is residing at Shimla on rent and I am paying Rs.2500/- Per Month to the Owner of House under proper agreement and rent payment receipts. I shall be highly thankful if your goodself will advise me that as I am residing in non-family accommodation (rent free) of the company and paying rent more than the HRA amount (HRA received Rs.1791/-Per Month & House Rent paid Rs. 2500/-Per Month), therefore can I save tax on the amount paid for rented accommodation if so how much of amount shall I save in tax. Regards
Mr.Puneeth: It is enough. HRA is not received and hence no income. Between taxable income of 2.5 lalk to 2.70 lakh no income tax is payable.
Dear Sir,
I am a contractual staff working in a govt. research organization in Delhi. My current salary is 2300+30% HRA, Office has alloted me a quarter so for that reason I am not eligible to recive HRA with my salary.
Wanted to know that whether income tax will be calculated on total amount of 23000+30%HRA*12 or only at total amount of 23000*12. also I have LIC & Health policy for which i have paid amount of 18000/-. Please suggest me is this enough saving to save my tax or I should have to have some more savings in order to save tax.
Mr.Prasad: Not the whole amount as you are getting HRA.
Sir, I am working in central government as Clerk. My Office has allotted me a BSNL Quarter after making agreement between my central government office and BSNL Office. I am getting HRA Rs.2500/- per month but I am paying Rs.3400/- per month to BSNL as per agreement. I have already calculate the exempted HRA in my case which comes to Rs.8500/-. My question is as follows:
Do I entitle to get deduction of whole amount i.e. Rs.3400/- under HRA, as this is a BSNL quarter (comes under government)?
Mob.7588180641
Sir, I am working in central government as Clerk. My Office has allotted me a BSNL Quarter after making agreement between my central government office and BSNL Office. I am getting HRA Rs.2500/- per month but I am paying Rs.3400/- per month to BSNL as per agreement. I have already calculate the exempted HRA in my case which comes to Rs.8500/-. My question is as follows:
Do I entitle to get deduction of whole amount i.e. Rs.3400/- under HRA, as this is a BSNL quarter (comes under government)?
MrLeo: NO.
I am staying in metro and paying rent, as well as I am paying rent for my dependent parents in other town…
Can I claim rent exemption in HRA rule for both rental premises.
Yes. You should certify the accommmodation is shared and claim restricted to 50% each, viz., Rs.1000/=
sir,
We both are employed and we are paying a monthly rent of Rs.2000/- . can we both claim 50% for hra exemption
Mrs.Tammy: For non salary people one can claim income tax rebate of not more than Rs.2000/- pm. Collect the rent receipt for Rs.800/= and get full tax exemption.!
Hi,My husband handles all maintenance for a property owner of 36 rentals The owner gives us free rent of a rental property he owns but at the end of the year owner always adds the 800.00 per month rent to my husbands earned income my husband is a contractor and this makes him go into a higher tax bracket when you take 800×12 = 9,600 rent that we actually didnt make? Should my husband be able to exclude this as earned income? Thanks for advice and direction for answers.
Mr.SamH: One have to have the rent receipt to claim exempt as per calculation. In your case, house on lease, you have to collect the fair market value from the municipal/local body of your place who will decide based on the location, house taken on lease.