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Eligibility for HRA exemption

Question: My basic pay is Rs 266,000 pa DA is Rs 64,000 pa I get HRA Rs 2,400 pm I pay rent for a house Rs 2900 pm . My question is that HRA will be exempted from tax or not . (ii) Is it compulsory or not to submit rent receipt?

       

Answer: Yes, you will be eligible for HRA exemption - provided you submit rental receipts as documentary proof. The HRA exemption you will be eligible for is least of the three below:

       

a) Actual HRA received - Rs 2,400pm * 12 = Rs 28,800

b) 50 % of salary (assuming you reside in a metro, else 40%) = Rs 330,000 * 50% = Rs 165,000
c) Excess of rent paid over 10 % of salary = (Rs 2,900 pm*12) - (Rs 330,000* 10%) = Rs 1,800

         

Note: Salary for the purpose of HRA is = Basic + DA (forming part of salary for retirement benefits).

       

Warm regards,

Expert @ TaxYogi

                

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Published Mar 29 2010




Comments

Comments

 

Baljinder Singh said:

When No HRA is received with Salary, can an employee claim a rebate of House Rent Paid by Him

October 14, 2010 4:26 AM
 

Baljinder Singh said:

if there is no HRA received in Salary, then an employee can claim a rebate of Rent Paid by him?

October 14, 2010 4:28 AM
 

Priya said:

@ Baljinder Singh: Yes, he claim claim (the rent paid by him) through section 80GG.

October 15, 2010 5:24 AM
 

Sagar Badjate said:

My basic pay is Rs 264000 pa DA is Rs 96000  pa I get HRA Rs 3000 pm I pay rent for a house Rs 2000 pm How will calculate my computation of income while filing my IT return? Plz send the details of Computation of income including HRA working my mail is sagar.badjate@gmail.com

February 8, 2011 2:01 AM
 

Amit Sharma said:

Hi Priya,

My House rent allowance from Company is Rs 5280 per month . For six months of this financial year I have lived on rent and the rent paid was Rs 9000 per month. I need to know whether the exemption granted to me is 5280 multiplied by 6 or 9000 multiplied by 6.

Thanks & Regards

Amit Sharma

February 8, 2011 3:40 AM
 

A R Parab said:

If an employee is paid HRA and special HRA also. Does special HRA becomes HRA received or only HRA is considered for computation of HRA exemption ?

March 10, 2011 10:53 PM
 

Hirdayram verma said:

My basic salary is Rs- 10750/ & HRA Rs-5375/-, I am paying Rs-3000/- per month as house rent but dont have reciept. I want to know what can max amt  be exemption.

Thanks & Regards

H R Verma

hrvermaji@gmail.com

April 16, 2011 12:03 AM
 

Chandradeep said:

I have paid rent last year but the rent receipt I submitted in my company have somehow not been considered and the HRA is not exempted in the Form 16. Can I get the HRA exempted while filing returns if I attach rent receipts now as a proof.

July 13, 2011 2:13 AM
 

Ritika Shah said:

I have paid rent last year but the rent receipt I submitted in my company have somehow not been considered and the HRA is not exempted in the Form 16. Can I get the HRA exempted while filing returns??

July 26, 2011 5:18 AM
 

chandan singh said:

Ritika Shah

u can claim u have receipt & when u fill return than a c.a. u tell that things & proof attech.

August 29, 2011 1:51 AM

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