Friday, March 6, 2009

HRA CALCULATOR (EXEMPTION -HOW TO CALCULATE)


on Friday, March 6, 2009

In most of the cases ,House Rent Allowance(HRA) is part of salary package .so exemption of Hra how to calculated is most of us is want to know in fact most of person already know about HRA exemption,I am giving this to shares my understanding on the above issue which may be useful for many of this site visitors.if you have any different views or any point left in this post ,please record in the comment section.

calculation of HRA exemption.

  • least of following three will be exempted
    1. Hra received
    2. 50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
    3. rent paid in excess of 10 % of salary
other points to be noted
  1. Salary for this purpose mean
    1. Basic salary
    2. Dearness Allowance if terms of employment so provides.
    3. commission based on a fixed percentage of turnover.
    4. all other allowances and perquisites is to be excluded.
  2. Salary related to period of rent should only be considered on due basic .
  3. Salary received in period as advance or arrears not related to calculation period should not be included.
  4. For calculating 40/50 % as per point 2 above place of residential accommodation is important ,not where the person is working.suppose Rajiv taken a house in Delhi on rent but has working in Rohtak than he is eligible as per point 2 upto 50 % as house is situated in Delhi.
  5. The calculation should be done on separately(monthly) if salary or HRA has varies during the year.
  6. No,Hra exemption if House rent  paid is less than 10 % of salary.
  7. Again exemption is denied where an employee lives in his own house, or in a house for which he has not paid any rent.
Calculate Your Hra Exemption Online Now from below Calculator (fill only yellow cells)




QUS:Is it necessary to submit House rent paid receipts to the employer,if yes,should the rent receipt include pan of the Land lord.

Ans:Employer are liable to deduct tds on salary and in present senario of annexure less income tax return ,there is more responsibility on DDO to check and verify each and every exception and deduction that employees claim .DDOs is empowered under income tax act to get and verify proof to saving and hra receipt from employees.However CBDT has exempted the employees who are receiving hra upto 3000 per month from submitting the proof to DDO(Employer) though Income tax assessing officer can demand Rent receipt from employee getting HRA upto 3000 pm.

Ques:Am I eligible for HRA exception if I have Paid rent to my father.

Ans:If you have actually paid the rent to your father then you can claim the benefit .


Ques:Am I eligible for HRA exception if I have Paid rent to my wife/husband.

Ans:If you have actually paid the rent to your spouse you can claim the hra exemption benefit but the house should not be purchased by your spouse from funds transferred by you without adequate consideration ,in that case you will be the deemed owner of the house and clubbing provisions will attract.More over my advice is here that we should avoid fake claim.

Update :Landlord's Pan mandatory for payment exceed more than Rs 1,00,000 per annum wef financial year 2013-14
Important :Landlord pan is mandatory if rent paid iss in excess of Rs  180000/- read more here(fy 2011-12 & 12-13)

Download HRA Calculator from below.File your email address and name in below Form and Downloading starts automatically .

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  1. Dear Concerned,
    i was claiming HRA REBATE BY PAYING RENT TO MY MOTHER'S HOME , BUT SHE IS DIED IN NOVEMBER 2011 AND HOUSE WAS STILL ON HER NAME,I M LIVING AS JOINT FAMILY WITH MY YOUNGER BROTHER,MY FATHER ALSO DIED IN 2004, IN THIS CASE WHAT CAN I DO TO RECEIVE RENT RECEIPT TO B PRODUCED TO MY EMPLOYER

    ReplyDelete
  2. I Have been given HRA of Rs 2333.But I have made Investment close to 1 Lack. I am staying in my own House.Is it compulsory to show rent receipt for tax exemption.

    ReplyDelete
  3. yes , you have to give rent receipt ,further if you are staying in your own house then hra exemption can not be claimed

    ReplyDelete
  4. Great overview, this really is valuable for house owners!@boseHouse Rent Receipt Template

    ReplyDelete
  5. I Pay a rent of 29500/- (which is more than the 15000/- cap limit) and my Landlord does not have a PAN. He is not ready to give a declaration too for the same. How do i calculate my HRA exemption in this case.

    ReplyDelete
  6. As per circular 5/2011 pan of the landlord or declaration from landlord is required to be shown to employer (DDO) .The same is possible for you so you should claim HRA exemption while filing Income Tax Return

    ReplyDelete
  7. I Pay a rent of 29500/- (which is more than the 15000/- cap limit) and my Landlord does not have a PAN. He is not ready to give a declaration too for the same. How do i calculate my HRA exemption in this case. My employer has considered 15000/- as the Rent paid and Deducted and the rest he has moved to Taxable income. Please clarify.

    ReplyDelete
  8. Your employer has opted for best option available to him ,balance HRA you should claim Balance exemption while filing the Income Tax

    ReplyDelete
    Replies
    1. i pay house rent of 17000/- p.m. My landlord is ready to give me a declaration since she does not have PAN no..Is there any standard format of declaration, available anywhere??

      Delete
    2. how do i claim the HRA exemption in ITR 1 form while filing return online...

      Delete
  9. thanks for providing this information

    ReplyDelete
  10. I am living in Panipat on rent and working at Panipat but build my own house at Kurukshetra with the help of house loan. Can I avail the HRA examption from my salary along with the rebate on the home loan interest .

    ReplyDelete
    Replies
    1. Yes , you can avail the benefit of HRA as well as HOUse loan

      http://www.simpletaxindia.net/2008/03/hra-and-house-loan-in-same-city-can-be.html?dhiti=1&p=

      Delete
  11. i am living in tuting a remote area of Arunachal pradesh on rent. My landlord doesnot have a pan no. and a proper receipt for rent. since the landlord is an uneducated person doesn't have any idea of this. so can you please help me how to get an exemption from tds on rent

    ReplyDelete
  12. Should rent receipt is compulsory to claim the exemption? please help

    ReplyDelete
    Replies
    1. Some proof of payment should be there .Not necessarily receipt .

      Read more: http://www.simpletaxindia.net/2008/03/hra-exemption-how-to-calculate.html#ixzz1qE5403r8

      Delete
  13. This comment has been removed by the author.

    ReplyDelete
  14. What will happen if i am paying rent more then HRA. For eg.
    Basic salary = 10000
    HRA (Non metro) = 4000
    Rent Paid = 6000
    So here what HRA exemption i will get ?

    ReplyDelete
    Replies
    1. Hra exempted lest of following
      1. hra received =4000
      2 40% of salary =4000
      3. rent paid in excess of 10%of salary =6000-(10% of 10000)=5000

      so leat is 4000, so 4000 is exempted

      Delete
  15. hi Rajan.

    Actually i had declared my HRA as 15000 pm/-. I want to Know whether i have to show Rent reciept+ Pan Card copy of Landlord or Rent Reciept is enough. Since its written above 15000, one has to show Rent reciept+ Pan Card copy of Landlord.

    Kindly Reply

    ReplyDelete
    Replies
    1. Pan number(not copy)of landlord is required only if rent paid is in excess of 180000/- .As you had paid only 180000 (not exceeding 1.8 lakh) so pan number of landlord is not mandatory

      Delete
  16. Please help me to decide optimal salary breakup. I have been offered a job at salary of 40,000 pm. I am aware that Travel allowance 800pm and Medical allowance 15000pa against bills is exempt from tax. My daughters are grown up and their studies are over so no education fees.

    I live in Ahmedabad and actual rent paid by me Rs. 13860pm.

    What's the optimal salary breakup for me to utilise maximum HRA exemption.

    This posting is for a friend so calculation is for a Male and not Female (just in case it makes a difference due to different tax slabs)

    ReplyDelete
    Replies
    1. Your friend should break up your salary as under
      Basic =25000
      pf 12%=3000
      hra=9950
      medical=1250
      transport =800
      total yearly =480000
      exempted pf=36000
      hra =119400
      transport=9600
      medical=15000
      total exempted=180000
      taxable =300000
      less saving 80c=100000
      net taxable =200000
      tax due =nil

      Delete
  17. My CTC is 300000.
    Can i deduct Insurance Rs. 2500 pa and PF Rs. 14400 pa while calculating taxable income?

    Even can I deduct HRA Rs. 48000 pa, Conveyance allowance Rs. 9600 pa, Medical allowance Rs.15000 pa ?

    Also I have a term plan and a whole life plan for which I am paying a premium of Rs. 8000 and Rs. 10000 respectively.

    Whether I am liable to pay tax ?

    ReplyDelete
    Replies
    1. First you have to got define your pay package from company according to your benefits . There after you can claim deduction as per rule. Kindly confirm what is written in pay package

      Delete
    2. My pay package is Rs. 300000 pa.

      Delete
    3. u need to pay tax to save our country from a financial debt.

      Delete
    4. Please pay tax so that it will eaten by our beloved corrupted ministers....And say we will investigate the matter..

      Delete
  18. Professional tax paid can be deducted from taxable salary ?

    ReplyDelete
    Replies
    1. Professional tax is deductible from salary income u/s 16(iii)

      http://www.simpletaxindia.net/2009/03/professional-tax-deductiont-from-salary.html

      Delete
  19. Very nice information and in the form of a table made it easy to understand for a novice like me! Cheers!!

    ReplyDelete
  20. 1).what is the Limit of TDS Rent for the year of 2012-13.

    ReplyDelete
    Replies
    1. Tds cut off limit is 180000 read more details here

      http://www.simpletaxindia.net/2012/04/tds-rate-chart-fy-2012-13-tcs-rates.html

      Delete
  21. I am from bangalore and used to stay with my parents in a rented home whose rented agreement is on my name. The monthly rent is 15k per month. Now I have got a job offer in Mumbai in which case I am going to stay in flat shared basis in that my share would be 10k.

    Bangalore Home: 15k per month with receipts
    Mumbai Flat: 10k per month with receipts.
    HRA received per month: 30k.

    My question is, Can I give both the receipts (bangalore and mumbai) for tax exemption?
    I know that the remaining 5k from 30K of HRA cannot be exempted.

    Please reply.

    ReplyDelete
    Replies
    1. No, you can give rent receipt for Mumbai flat only

      Delete
  22. i am getting negative value for (rent paid - 10% of salary). So my employer is not considering my rent which is 4000 pm, i am in non metro. any comments?

    ReplyDelete
    Replies
    1. Your employer has done correct thing , as rent paid minus 10 % is salary ,you are not eligible to claim hra exemption

      Delete
  23. Hi, My Actual HRA received is 1,31,109 and exempted is 1,04,137. I have declared the House rent as 11,000 per month. How much should i have declared for getting the full exemption.

    ReplyDelete
    Replies
    1. provide monthly information to e mail guptarajin2002 at
      ......
      yahoo.co.in

      Delete
  24. Hi Sir, My actual HRA received is 1,31,109 and exempted is 1,04,137.

    When i have declared 11,000 as rent per month. I wanted to know how

    much should i have declared to get the full eligible exemption.

    ReplyDelete
    Replies
    1. provide monthly information to e mail guptarajin2002 at
      ......
      yahoo.co.in

      Delete
  25. Hi Raja,

    Please help how much i can claim for HRA from below salary

    My Salary Details:
    --------------------------
    Basic Salary: 314,017.52
    Flexible Benefits Plan: 376,821.02
    Retirals: 52,754.94
    Annual Remuneration: 743,593.50
    Performance Award: 20,725.16
    Growth Driven Profit: 0 - 82,900.62
    Total Compensation: 805,768.97

    Thanks

    ReplyDelete
    Replies
    1. Please provide three things

      Basic plus da plus commission as Fixed % of sale, rent paid ,station of residence

      Delete
  26. Hi raja,

    My HRA is 19000 PM . I am in working in bangalore but my family is staying at my native due to education of my child . My question is that can i submit Rent recipt of my native rented house which is for 19000 PM with my landlord pan no for tax exemption

    pl help

    ReplyDelete
    Replies
    1. you can provide hra only for your residence not for your family

      Delete
    2. thanks for your quick reply.
      I want to add in above querry that in bangalore i am staying with my sister's and she also have rented house.so i am not paying any rent as i shifted in bangalore 6 month back, in that case can i avail HRA benfit for a rented house at my native where my wife and kids are staying?

      pl help

      thanks
      SJ

      Delete
    3. Hi Raja,

      add on to my reently posted querry , i am confused because of the above published article ( Point 4 where example of a person working in Rohatak and hv rented house in Delhi)

      pl help

      thanks
      SJ

      Delete
    4. In point number 4 employee himself is residing at Delhi not his family ,if you want to claim HRA exemption then you can claim rent of your sister's house

      Delete
  27. I an an govt employee..........i am staying at my brother's house in delhi and i am claiming HRA....I am not paying any rent to him.....Can i claim tax exemption on HRA?? Thanks

    ReplyDelete
    Replies
    1. No you can not ,unless you have paid the rent you can not calaim hra exemption

      Delete
  28. Hi Raja Babu,
    My basi+ Da is 24600 and
    HRA is 7380,
    i pay House rent 6500 monthly, my landlord lives in another city & i online transfer the rent in my landlord account, but he don't provide any rent receipt, i have only bank entry for online amount transaction under name "house rent",
    can claim HRA exemption, my employer demanding Rent receipt or rental agreement for exemption only.

    ReplyDelete
    Replies
    1. Your employer can demand receipt as bank entry itself can not proves that payment is being made for rent . so you should call your landlord to send receipt through post.

      Further if your employer is not giving you Hra Exemption then you can claim the same at the time of filing of return also.

      Delete
  29. I AM SALARIED AND GET SALARY OF 30K, I KNOW TRANSPORT ALLOWANCE 9600PA, MEDICAL REIMBURSEMENT 15000PA, EDUCATION ALLOWANCE 100 PM FOR 2 CHILDREN. WE DO NOT HAVE HAVE PF, HOW MUCH HRA I CAN SHOW ?, AM PAYING RENT OF 5000 PM, AM FEMALE

    ReplyDelete
  30. Hi Raja,

    Please help how much i can claim for HRA from below salary

    My Salary Details:
    --------------------------
    Basic Salary: 19490/- PM
    Grade Pay : 6000/- Pm
    DA 27% : 6882/- PM
    HRA 30% : 7647/- PM
    REnt paid : 16000/- PM (from AUG 2012)

    Thanks

    Read more: http://www.simpletaxindia.net/2008/03/hra-exemption-how-to-calculate.html#ixzz2NxQgas70

    ReplyDelete
  31. How to calculat HRA amount?

    ReplyDelete
  32. How to decide HRA amount if i want to set salary for my employee?

    ReplyDelete
  33. Hi Raja,
    I am working for a company based in Mumbai, my basic pay is Rs:17,875/- and HRA received is Rs:10,725/-
    Company has provided me accommodation and charging an amount of Rs:50,750/- PA from my package(Taxable)
    My parents are staying(Native place/Non-Metro) in a rented house for which I am paying rent of Rs:8000/- per month.
    My company Finance Department is not accepting any of the documents and debiting TAX for HRA(Rs:10,725p/m) and accommodation charge(Rs:50,750p/a) and asking me to apply for returns.
    My question is whether I will be eligible for accommodation exemption or HRA exemption or none of them?
    Please clarify my doubts.
    Thanks in Advance.

    ReplyDelete
    Replies
    1. As per rule ,they are doing correct .To claim HRA exemption ,you must reside in rented house(not your parents)

      Delete
    2. Thank you Raja.
      So if I am not be eligible for HRA then I have to pay TAX for HRA(Rs: 12,870 p/a) and TAX for accommodation(Rs: 5075 p/a).
      I failed to utilize the TAX benefit which has been provided by Govt.of India.
      Is it possible for me to apply returns for the HRA Tax Exemption?
      While applying for returns if I show Tax deduction under HRA will I face any legal issues? Please confirm me once.

      Delete
    3. As ,explained earlier that you are not eligible for HRA exemption so you should not claim it in your income tax return

      Delete
    4. Thanks a lot Raja for the information provided.

      Delete