Wednesday, December 28, 2011

HRA exemption Calculation monthly , yearly basis or period basis?


on Wednesday, December 28, 2011

Organizations in India follow different methods for arriving at the House Rent Allowance (HRA) exemption, while calculating income tax on employee salary. Each method produces a different exemption amount. This begs the question, “which is the correct method?” Payroll managers have different opinions on how the exemption should be calculated. Let us examine the methods used for the HRA exemption calculation, and see which method goes well with the letters and spirit of Section 10(13A) of the Income Tax Act, 1961.


As per the Indian income tax law, the HRA exemption should be calculated as the least of the following.
1. Rent paid in excess of 10% of basic salary.
2. Actual HRA received by the employee. 
3. Forty percent of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city
From the above “least of three” rule, it is clear that HRA exemption amount is determined by a number of factors — Basic pay, location of the residence, rent paid by the employee, and the HRA paid to the employee.

So far, so good. The “least of three” rule looks easy to understand and implement. However, the same rule can be applied in different ways to create different methods of HRA exemption calculation.

Let us assume that an employee, who lives in a metro city, takes home a monthly Basic pay of Rs 50,000, monthly HRA of Rs 25,000, and pays a monthly rent of Rs 25,000. As long as everything remains constant throughout the year, there is no complication. The problem starts once any of the factors changes. Let us assume that the employee has a loss of pay for a month and half, say from August 1 to September 15, but the employee pays full rent in the months of August and September. Let us look at the different methods of calculating the exemption.

Method 1 – Annualized HRA exemption calculation

Organizations using this method calculate HRA exemption by determining the values of the different factors (Basic pay etc.) for the year and applying the “least of three” rule.
a. Basic pay for the year = Rs 50,000 x 10.5 months (on account of loss of pay) = Rs 525,000.
b. HRA paid to the employee = Rs 25,000 x 10.5 months (on account of loss of pay) = Rs 262,500.
c. Rent paid by the employee for the year = Rs 25,000 x 12 = Rs 300,000.
HRA exemption calculation
1. Rent paid in excess of 10% of Basic salary = Rs 300,000 – Rs 52,500 = Rs 247,500.
2. Actual HRA received by the employee = Rs 262,500.
3. Fifty percent of Basic salary (since the location of the residence is in a metro city) = Rs 262,500.
The HRA exemption for the year is the least of the above, which is Rs 247,500.

Method 2 – Monthly HRA exemption calculation

Organizations using this method calculate HRA exemption each month, and add the monthly HRA exemption values to arrive at the exemption for the year.

1. Monthly HRA exemption amount — after applying the “least of three” rule for each month — from April to July and from October to March = Rs 20,000 per month.
2. Monthly HRA exemption amount — after applying the “least of three” rule — for August = Rs 0.
3. Monthly HRA exemption amount — after applying the “least of three” rule — for September = Rs 12,500.
The total of HRA exemption amounts across all months = Rs 212,500 for the year.

Method 3 – HRA exemption calculation for each period of input change

As per this logic, whenever any of the input parameters (Basic pay, Rent paid, HRA, and Metro or Non-metro) changes for an employee during a year, the HRA exemption is calculated. In other words, the year is divided into as many periods as dictated by changes in any of the input parameters, and HRA exemption is calculated for each of the periods. Finally, the HRA exemption amounts for the different periods are aggregated to arrive at the HRA exemption amount for the year.

With regard to the illustration presented earlier, the year is divided into 3 periods, as follows.
Period 1: From April 1 to July 31 – when there is no change to any of the input factors.
Period 2: From August 1 to September 15 – when Basic pay and HRA change (became zero) on account of loss of pay.
Period 3: From September 16 to March 31 – when there is no change to any of the input factors.
HRA exemption calculation
HRA exemption for period 1– from April 1 to July 31 = Rs 80,000.
HRA exemption for period 2 — from August 1 to September 15 = Rs 0.
HRA exemption for period 3 — from September 16 to March 31 = Rs 130,000.
The total of HRA exemption amounts across all periods = Rs 210,000 for the year.

The 3 methods yield different annual HRA exemption amounts – Rs 247,500, Rs 212,500, and Rs 210,000.



Which is the correct method?

This is an important question to answer. Depending on the method an organization uses, the tax liability for the employee would be higher or lower, and in turn the government’s receipt from tax on salary income would be higher or lower.

The above illustrations present HRA exemption calculation in the event of changes in Basic salary and/or HRA. In the event of Basic salary or HRA not changing, but the rent amount changing or the location of the residence changing (say, from metro to non-metro), there will still be differences in HRA exemption calculation across the 3 methods.

While there is no explicit instruction from the income tax department as to which method should be used, we believe the “period” method (Method 3, described above) goes well with the provisions of Section 10(13A) of the Income Tax Act.

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 2012-13 &11-12)

Source:TIBS processes payroll for thousands of employees across customer organizations each month. If you are looking to outsource payroll for your organization or looking for a quality payroll software, please get in touch with us.

Email: [email protected]
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  1. i have worked for 3 1/2 in the assessment year 2011-12 i.e., from Aug 2010 to Nov 2010. For the remaining period, I was not working. I am staying in a rented house for all these period. Please let me know if I can claim HRA exemption for entire year or only for the period I had worked for...

    ReplyDelete
  2. For Sri :HRA exemption is allowed for the period you have worked.to calculate HRA exemption Rent paid /HRA received/ SALARY must be taken for same period

    ReplyDelete
  3. my monthly salary is pay 15270 +gp 4200+da 9930+HRA974total 30374 but i have paid house rant Rs 5500PM and Annualy p tax RS 2500. Can i get any relief Income tax and what is my monthly/annualy IT as it a rural area p.c palei [email protected]

    ReplyDelete
  4. Dear Purna

    yes, You can claim hra exemption fully 974 rs per month. as your rent paid minus 10% of salary is more than hra received .

    ReplyDelete
  5. Hello sir,

    This is sai, My Basic is 17509/- per month. HRA 8754/-, DA is 17068/-. I am staying in Non-Metro city and paying 12000/- rent per month. Can you Please let me know, How much HRA exemption i can get?

    ReplyDelete
  6. dear sai b as the da is changeable half yearly so you should calculate monthly basic.

    to calculate exemption check least of this
    1. rent paid minus 10% of (basic +da)
    2. Hra received

    calculate monthly basis and then add 12 month least value.if figures remain same for complete year then ur calculation is given as under

    1.12000-(10%(17509+17068+grade pay if any))=12000-3458=8542
    2 8754

    exempted hra is 8542 monthly

    ReplyDelete
  7. Hi, For me the least calculated HRA is of the HRA Paid through salary. In that case do i need to submit the rent receipts???

    ReplyDelete
  8. My HRA is 7500.The house i have rented iS in different city where my family is staying n i am on move always with this job.Can i be exempted for hra...please advise

    ReplyDelete
  9. Dear Kaiser ,

    You can not claim rent for family members ,

    ReplyDelete
  10. Dear Orem Nambi,

    Your query is not clear to me . ask in detail

    ReplyDelete
  11. hello sir, this is tarun.4 of frnds live together and pay 10,000.How much shud i show as rent paid 10,000 or 2500 ??

    ReplyDelete
  12. Dear Tarun,

    If you want to claim HRA then show rent payment quarterly by each friend @ 10000 pm instead of 2500 per month by each friend

    ReplyDelete
  13. iam leaving in my own house and for which iam claiming housing loan interest exemption u/s 24(b).I am receiving a monthly HRA of 480 per month,am i eligible for claiming HRA exemption?

    ReplyDelete
  14. property self occupied,claiming hsg loan interest,is hra exempt in any way,my monthly hra is 480

    ReplyDelete
  15. Hi, I stay in thane city, Maharastra. Can I claim the benefit of metro city?

    ReplyDelete
  16. Thane is not covered in metro city

    ReplyDelete
  17. Sir, should I produce Rent Slips to get exemption? Is there any limit for not to produce rent payment proof to the employer?

    ReplyDelete
  18. Production of Rent slip exemption to DDO(employer) is available to employees who are receiving House rent up to 3000 Rs monthly

    ReplyDelete
  19. I AM RECEIVING RS. 3200 PER MONTH AS HRA. CAN I CLAIM REBATE FOR RS 3000 WITHOUT PRODUCING BILL? THE BALANCE RS 200 WILL BE TAKEN FOR TAXATION. RAJAN

    ReplyDelete
  20. No you can not claim HRA exemption without producing rent receipt ,as HRA received per month is exceeding 3000/-

    ReplyDelete
    Replies
    1. what is the minimum limit to claim HRA exemption without producing rent receipt.

      Delete
    2. i am living in TUTICORIN (TN) and getting Rs.710/month as HRA. i didn't produce any rent receipt to office. whether they deduct tax for HRA paid to me???

      Delete
    3. Dear Siva,

      There is no need to produce rent receipt where hra received per month is 3000 Rs

      Delete
  21. Hi thanks for the post...It cleared a no. of doubts..But still have a doubt..
    Basic for the whole year = 130800
    HRA paid = 52320
    Rent paid = 6500*12= 78000
    According to the calculations, HRA exempted would be 52320, but it is 50620 and the difference 1700 has been added to my net taxable income. Can you help me understand where does this figure come in from?

    ReplyDelete
    Replies
    1. DEAR Priyanka ,
      ask query with complete details ,how you come up with figure 52320

      Delete
  22. miss priyanka what is ur DA,CDA and GP?
    HRA Exemption= Rent paid -10% of (BASIC+DA+CDA+GP)

    ReplyDelete
  23. hello sir, i am working in a bank as an officer( basic =Rs16300/-), i am staying in hostel in mangalore and working . i dont have a own house here in mangalore. we have an option called reimbursement of monthly rent payable on approved residential quarters ( in which bank will be paying the rentals of the quarters on behalf of officers up to 4800Rs ) only if we opt to take a house on rent. but instead i opted to stay in hostel (for which i am paying Rs 4000/- including accomodation +food) so because of which i receive a net pay of 6.5% of basic pay as HRA(i.e. Rs1060) . the hostel is registered and it is in leased premises. can i claim HRA exemption for the amount i receive as HRA in salary? my ddo is not accepting any exemption stating that you have to take a house only to claim the HRA under exemption. i am totally confused. pls guide me. whether it is possible to claim IT exemption even if our ddo doesnt accept it and show it under form 16?

    ReplyDelete
    Replies
    1. Dear raghuveer ,

      You can claim HRA exemption. In your case you are receiving hRA and further you are also paying rent so you can claim HRA exemption . However while calculating the HRA exemption you have to reduce food charges from the total payment made to hostel .Further while calculating 10 % of salary you have to include DA also.

      suppose food charges are 1500 in 4000 and da rate is 50 % then calculation will be as under.

      least of the following is exempted.
      1. HRA Received=1060
      2.Rent paid in excess of 10% of salary (10% of (16300+8150)50% da =4000-1500-2445=55Rs
      3 40% of salary 9780

      least is 55 Rs only per month . Further if have to make exact calculations

      Delete
    2. I think ur calculation is wrong, 2nd point that Rent Paid in excess of 10% basic=4000-0.1*16300

      Sudarshan

      Delete
  24. Sir,
    I am a govt. officer staying in delhi and paid Rs. 14000/- per month to his wife,House is her name pl confirm me can i get the HRA Rebate from my office under which section
    thnks
    Naveen Varshney

    ReplyDelete
    Replies
    1. If house is purchased/construct by your wife by your funds then you can not pay rent to your wife. If he owned house from their own resources then you can pay rent to her and can claim HRA exemption

      Delete
  25. Shall Vashi (Navi Mumbai) be cosidered as Metro/ Non-Metro for HRA Deduction? I think just like New Delhi, even it shall be considered as a Metro City. Request professionals to comment.

    ReplyDelete
    Replies
    1. if navi mumbai i covered under municipal limit of Bombay then you can treat it metro

      Delete
  26. We 3 persons are staying in a house and paying a rent of 4500 per month. 2 of us are working in same company. How much can we show as rent paid for each person.

    ReplyDelete
    Replies
    1. please send your salary details as well like Basic ,DA, HRA per month

      Delete
    2. my basic salary is 12000, there is no DA nad HRA is around 5000. Who will check the tax for HRA amount, I mean how the govt checks whether the owner is paying the tax for the rent given by the rented persons.

      Delete
    3. No one can check ,if you want to take risk then you can .

      Delete
  27. Hi my basic salary is 10985
    I live in noida and pay 6000 per month
    How much House rent can i exempt.

    ReplyDelete
    Replies
    1. you have not given the amount of HRA received and amount of DA

      Delete
    2. HRA 6591 no DA

      Delete
    3. Exemption calculation is under .
      least of following exempted
      1. hra received =6591
      2. 40% of salary =4400(appox)
      2. rent paid in excess of 10% of salary =6000-1098=4898

      least of above is 4400 exempted .

      Delete
  28. My bank is deducting TDS on my bank F.D. interest. I have filed form 15 G at the starting of this financial year. My FD interest Is around Rs.220000/-. Can the bank deduct TDS after receiving form 15G?

    ReplyDelete
    Replies
    1. 15G form can only be given if gross total income is less than exemption limit ,as your fd interest is more than exemption limit ,bank can deduct tax even after submission of the form 15G

      Delete
  29. Hai My basic is 35000 and just finished my housing loan. I was taking benefit from Interest paid for H/L. Now can I opt for HRA exemption. HRA is 50% of basic

    ReplyDelete
    Replies
    1. You can claim HRA exemption if you are residing in rented house and paying the rent .

      Delete
  30. Hai My Basic salary is 34330 and HRA is 20598 per month. I am staying in Viajayawada and paying Rs 15000 per month as rent . I have not claimed HRA to my company and company has issued form 16 without considering my HRA . Can i claim HRA while submitting the Income tax returns ,If so pls let me know the procedure for the same. Thx

    ReplyDelete
  31. Can any body reply to the above querry

    ReplyDelete
  32. My father has taken a house on rent and has sublet to me on rent. Rent receipt is issued by landlord on my fathers name who is retired govt personal. My query

    1. Can I claim HRA by taking rent receipt from my father and pay my father by cheque.
    2. Money received in fathers hand is taxable or not as he has paid the same amount to the original landowner.
    Pleas reply ASAP.

    ReplyDelete
  33. Even, I have submitted Rental Agreement, Rent Receipts, DOB of my Landlord (for senior citizen) and Address Proof. However, my HRA is exceeding 180k and my House owner is not having a Pan Card, I submitted Form 60. In our company, our Tax consultants/Auditor they are not considering Form 60 and due to not availability of Pan Card they deducted Tax with minimum HRA (may be around 15 or 17.5 k for senior citizen and i am not sure, how much they considered).
    Is there any provision to apply actual HRA during my Tax Filing?
    Thank you.

    ReplyDelete
    Replies
    1. The good news is that you can apply actual HRA exemption available to you at the time of return filing .This is also written in instruction of Income Tax form

      Delete
    2. Many Thanks, Rajan Gupta, let me try that during the time of return filing.

      Delete
  34. what the hell is this finalised by IT department, its just peenuts even a person not getting exemption on actual HRA paid to landlord. stuidness we are paying tax and gov. of india is wasting this money on Air India. whole bulshit.

    ReplyDelete
  35. Dear Raja Babu Sir,

    From March 2012 my salary hiked 5,00,000 p.a. I'm paying LIC 22,000 p.a. My house rent is 7300 per month. So how much salary i will get on monthly. Please clarify me.

    ReplyDelete
  36. Dear Raja Babu Sir,

    From March 2012 my salary hiked 5,00,000 p.a. I'm paying LIC 22,000 p.a. My house rent is 7300 per month. After tax deductions I'm getting 39800 per month. Shall i increase my monthly salary to more than 39800 per month.

    ReplyDelete
  37. Hi Raja Babu,

    I have worked for two companies in FY-2011-12. April, May in one co. and rest of the FY in another Co. Now the First Co. hasn't included HRA in the exemption. They have only deducted Professional Tax.
    Please let me know if/how could I claim HRA for the first two months of the year.

    Thanks,
    Srinivas

    ReplyDelete
    Replies
    1. Yes , you can claim hra exemption while filing your income tax return .

      Delete
  38. Kindly tell me what criteria should be followed by hostel (in terms of facilities) so that the students residing in hostel wouldn't be able to claim their HRA from fellowship.

    ReplyDelete
    Replies
    1. In fellowship payment HRA component must be shown as payment .

      Delete
    2. Hi Raja Babu

      I am working in an IT company earning an basic of Rs.25K and HRA of Rs.12.5K and I am staying in a hostel in Hyderabad 6500/- per month. Can I claim the HRA exemption and how can I do that.

      Delete
    3. Least of Three is exempted
      1. rent paid in excess of 10 % of salary=6500-2500=4000
      2 Hra Received =12500
      3 40 % of salary=10000

      so 4000 month is exempted from total HRA.

      To claim this benefit you have arrange a rent receipt from hostel

      Delete
  39. Hi Raja,

    I am working in a consulting firm. I receive HRA from my company. I had not declared any rent amount to my employer at the beginning. Therefore, Company has deducted only rent paid my me for the last quarter. However, I had submitted rent receipts for the whole year at the end of the last quarter. Now, I am filing tax returns using ITR-1. Is it now possible to get exemption on the rent paid by me? If yes, where should I fill the actual exemption values.

    Thanks!

    ReplyDelete
    Replies
    1. Yes you can claim exemption now. In itr-1 ,sr no -1,you should fill value of salary at sr number one after adjustment (reduction) of hra exemption amount.

      Delete
  40. hi . my employer has not provided me correct form 16 .they have not included my hra . now how should i claim the same . if i claim it now should i show any recipts or submit any bill if my rent is less than 3000

    ReplyDelete
    Replies
    1. You can claim HRA exemption while filing income tax return . Nothing is to be attached with ITR form . However ITO may call for details if your case comes under scrutiny

      Delete
  41. Hi,

    I need your urgent help.
    I was staying in company accommodation till nov and shifted to my rented house after marriage from nov to march. but my company only added salary component in my salary from jan .. however from nov till dec i was paying rent. how can i claim benefit of HRA exemption for nov and dec

    ReplyDelete
    Replies
    1. If no hra has been paid then no deduction can be claimed

      Delete
  42. Hi,

    I want to know that my company is not providing HRA to me, but I am paying the House rent myself. I want to know that, is there any exemption in ITR for that. my basic salary for the year was 167100. how much refund I could get. there is no amount shown as HRA or value of prequisites as per section12(2).

    ReplyDelete
    Replies
    1. Yes , you avail deduction u/s 80GG subject to few conditions

      http://www.simpletaxindia.net/2009/01/hra-exemption-to-pensioners-meaning-of.html

      Delete
  43. hi, this is shashi. pls let me know about, if i did not taken hra exemption from my company also not provided rent receipts. now i am filling online itr so, under which head/section i can claim the calculated hra amount.

    ReplyDelete
    Replies
    1. First calculate your HRA exemption , the deduct it from salary Income shown on the form 16 and fill net figure after deduction in ITR-1 sr number 1

      Delete
  44. hi, this is mahesh, can u tell me what is the extra exempt limit as: (Insurance Policy, Children fees & Medical claim etc. if any)

    ReplyDelete
    Replies
    1. Over all limit is one lakh for all three.

      Delete
  45. Hi, I need your help on this.
    Please guide.
    Basic Salary - 12,484/m
    HRA - 6241/m
    Actual Rent - 14,000/m
    Staying in Panvel, Navi Mumbai.
    How much HRA I can claim.

    ReplyDelete
    Replies
    1. HRA Exempted :Least of three will be exempted
      (1.) HRA Received 6241
      (2.) Rent paid in excess of 10 % of salary 12751.6
      (3.)40% /50 % of salary 6242
      Hra exempted per month is 6241
      Annual exemption 74892

      Delete
  46. Hi Raja,

    I couldn't produce HRA proof before, hence my form 16 doesn't reflect the HRA exemption. Can I still claim refund for the HRA exemption by filling ITR if yes then how can I do that? I am using Taxspanner site for filling my ITR.

    ReplyDelete
    Replies
    1. you can avail hra benefit by deducting HRA exemption from salary amount shown at sr no -1 in itr-1

      Delete
  47. i have deducted HRA amnt from sr no -2 in itr1 is it acceptable

    ReplyDelete
    Replies
    1. It is incorrect 101% read details here

      http://www.simpletaxindia.net/2012/07/e-filing-income-tax-return-common.html

      Delete
  48. i have a loan so interest component i will fill in sr no -2 also i have to claim hra as i am staying in a rented house.this hra amount i should deduct from sr no 1 or add to sr no -2.Kindly help

    ReplyDelete
    Replies
    1. hra exemption should be deduct from sr number 1

      Delete
  49. Dear Sir,
    I work in a hospital and stay in hospital-alloted quarters. I get HRA of 3500 per month and hospital deducts 6000 per month as part of rent for the accomodation.

    My wife also works in the same hospital and gets HRA of 3000 per month but does'nt have to pay any rent as she stays with me. Can she claim HRA exemption?

    ReplyDelete
    Replies
    1. if you are working in not govt office then No issue .Company can make their own rules for payment .

      Delete
  50. Hi

    I work in Gurgaon and pay rent for a rented accomodation for my parents in Ambala. Can that be claimed in HRA as Ambala is 250 KM far from Noida

    Thanks,
    Tarun

    ReplyDelete
    Replies
    1. No , you can not .HRA exemption can be claimed for rented house in which employee himself is residing

      Delete
  51. Hi
    My basic is 9300-4200-13500.
    D.A.-9720
    HRA-1350
    Total sallary-25470.
    I pay 3500 rent per mnth in non metro area.
    Can i get hra exemption?

    ReplyDelete
  52. BP 21110 DA=18999 HRA=6333 TA=2752 RENT PAY =8500PM IN DELHIPL DEFINE HRA EXEMPTION 2012-2013 G.S YADAV

    ReplyDelete
  53. SIR MY BASIC 6500
    HRA 46750
    OTHER ALLOWANCE 46750

    LIVING IN COIMBATORE
    HOW TO CALCULATE HRA

    ReplyDelete
  54. The house is own by wife , which she constructed with her own funds. I am staying in this house and paying monthly rent to her by cheque and obtain rent receicpt also. Can I clain HRA benefit in my IT calculations. She also declares her rent income in her IT retrn.

    ReplyDelete
  55. Is it mandatory that the employee should be paid 10% of his basic salary to rent and should not that be tax exempted?

    For example A is an employee

    A had basic salary 20000
    A had HRA allowance from company is 8000 (non metro city)
    Actual rent he is paying also 8000
    Total basic per year is 240000
    Total HRA recived for year is 96000
    Total Rent paid for year is 96000
    But because of 10% excess from basic rule, he can claim tax exemption as (96000-24000)= 72000, even though he is paying rent of 96000 per year. So is true that one person suppose to spend 10 % basic salary to RENT and should not claim exemption for it?

    ReplyDelete
  56. HRA rent with parents? can i exa.?

    ReplyDelete
  57. I was staying in city A in rented accomodation till nov. moved to another rented accomodation at city A. But stay at city A for 2- 3 days & city B for 2-3 days in a week also on rent. Thus can i claim for exemption, rent paid till nov in City A and DEc till march at City B only.

    ReplyDelete
  58. I have a house jointly owned by father and me and home loan too....
    So in this case how can i claim HRA..
    Please help me...

    ReplyDelete
  59. Sir,
    I am working in an Government organisation on contract basis with a consolidated pay of Rs. 20000 per month. I am paying Rs.2500 as rent per month. Can i claim the same amount as HRA exception per month.

    Ratheesh, Trivandrum

    ReplyDelete
  60. Hi Sir

    Please find my salary structure and suggest me how much amount i can claim for Rent
    BASIC 8000
    HRA 10000
    I am living in Navi Mumbai and paying rent 11500/M, please suggest

    ReplyDelete
    Replies
    1. you will get least of following exempted

      1.HRa received =10000
      2. rent paid in excess of 10 % of salary=11500-(8000 * 10/1000)=10700
      3 50 % of salary=4000

      Delete
  61. Anonymous said...Hi, this is RK, my BAsic is 10,000 and HRA is 9300/Month. What is my Rent exemption for 01/04/2012 ti 31/03/2013

    ReplyDelete
  62. I'm working on a contractual basis under NRHM with a consolidated pay of Rs.40000 pm. I pay Rent Rs.5000 pm. Can I claim HRA and if then how much?
    plz reply

    ReplyDelete
  63. working in pvt co. my Basic is Rs.128688/- pa and da is Rs.3672/- pa HRA is Rs.84216/- pa. how much exemption can i claim?

    ReplyDelete
  64. I am being paid a consolidated pay of Rs 125000. No details of HRA or other is shown in payslip. I pay Rent of 17500 pm. I have rent receipts from the land lord. However, office has stated that as HRA is not shown in the pay slip, they cannot provide deduction for the same, but I can claim deduction when filing IT return. Kindly advise.

    ReplyDelete
    Replies
    1. if no break up i provided you can not claim hRA exemption ,however you can claim deduction u/s 80GG subject to some condition,check details here

      Maximum deduction 2000 per month

      http://www.simpletaxindia.net/2009/01/hra-exemption-to-pensioners-meaning-of.html

      Delete
  65. Hi
    How much exemption can i get under HRA
    my Basic is 3100
    HRA 800 and DA 12100. I pay the rent of 12000 pm.in non metro state.

    ReplyDelete
    Replies
    1. Hra will be fully exempted i.e 800 per month

      Delete
  66. I was receiving Rs.13750 as stipend(without any D.A./ basic Pay/HRA being mentioned) during my post graduate course from April to August 2012.
    Subsequently in my first company I was paid a HRA of 7500 for September, October and November With a Basic Pay of Rs.15000.

    From December 2012 to March 2013 my HRA was Rs. 1600 per month with a consolidated pay of Rs. 115600 (No separate Basic/ D.A. mentioned in Pay Slip).
    I was residing in a Metro city throughout the said period paying a rent of Rs. 10,000 per month.
    How should I calculate my HRA.

    ReplyDelete
  67. my basic salary is 21630,DA is 19467.I stay in Delhi in a rented flat rent is 10000 per month.I did not get HRA rebate in TDS as i did not furnish the rent slip due to some reason.Can i claim refund while filing IT return.I have the rent slips and rent agreement.

    ReplyDelete
    Replies
    1. yes ,you can claim hra benefit at the time of income tax return filing

      Delete
  68. MY SALARY IS 21000 PER MONTH MY BASIC 11550 HRA 8650 CONVEYANCE 800 AND IM PAYING RENT 8000 CAN I CLAIM HRA

    ReplyDelete
    Replies
    1. You can get least of following as exemption from hra
      1. hra received =8650
      2. rent paid minus 10 % salary =8000-1155=6845
      3. 40 % of salary =4620

      so 4620 rupees is exempted and balance 4030(8650-4620) is taxable

      Delete
  69. hi,
    i am an army officer. i am posted at non family field station. my family is staying in delhi at my mother's home. i am claiming hra but i am not getting any exemption on my hra claim. my employer has deducted 20 % tds on my hra claim. am i exempted for any amount or not. if yes hw much?

    ReplyDelete
    Replies
    1. HRA exemption is available only if you are paying any rent for house where you resides .You have not informed about this.

      If you are paying rent then you can claim hra exemption as per details given in above post

      Delete
    2. is it compulsory to pay rent to mother also. do i need to submit some rent cert also.

      Delete
  70. is it compulsory to pay rent to my mother also. do it need to submit rent cert also.

    ReplyDelete
  71. hi Sir,

    I am Central Gov. Servent. I get HRA year 2012-13. I paid Rent whole financial year. In August 2012 I taken Home Loan for House in same city. but i could not shifted. Can I claim HRA exemption and Home loan Principle and Intrest.

    ReplyDelete
  72. Is HRA calculated or paid on numbers of days you worked in a month. Like if out of 30 days my working days are 18. My HRA is 10000 per months and my basic 25000. How much should I expect as HRA. Will I get entire 10K or how does it work? Please Guide?

    ReplyDelete
  73. If the employee is paying rent more than one lakh to different landlords ( three & four ) in a f/y is it mandatory to collect PAN copy of each landlord for availing hra exemption u/s 10 (13a) if no can hra exemption be given

    ReplyDelete
    Replies
    1. Yes,as the limit of 100000 is fixed employee wise not land lord wise. Further if pan number is not provided then exemption can not be allowed by employer .
      However ,employee can claim HRA exemption while filing Income tax return .

      Delete
  74. If the employee is paying rent more than one lakh to different landlord ( three & four ) during in a f/y is it mandatory to collect PAN Number of each landlord for availing HRA ememption u/s 10 ( 13a)

    ReplyDelete
    Replies
    1. Yes,as the limit of 100000 is fixed employee wise not land lord wise. Further if pan number is not provided then exemption can not be allowed by employer .
      However ,employee can claim HRA exemption while filing Income tax return .

      Delete
  75. I pay rs 25000 to my father monthly from my salary basic 18600 + GP 6600..I am a senior resident doctor and reside in house owned by my father. Can I gv rent receipt from my father..if yes then of hw much amount...or can I give less than rs 5000 declaration by myself to my employer of rent paid without rent receipt...or can I claim deduction of hra received in my salary as I get rs 6600 hra and my gross monthly salary is rs 75000

    ReplyDelete
  76. I pay rs 25000 to my father monthly from my salary basic 18600 + GP 6600..I am a senior resident doctor and reside in house owned by my father. Can I gv rent receipt from my father..if yes then of hw much amount...or can I give less than rs 5000 declaration by myself to my employer of rent paid without rent receipt...or can I claim deduction of hra received in my salary as I get rs 6600 hra and my gross monthly salary is rs 75000

    ReplyDelete
  77. Can I get deduction of rs 3000 received monhtly as transport allowance in return filed every yr...

    ReplyDelete