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Income Tax (IT) treatment of House Rent Allowance (HRA)

Most of the salaried people get an allowance for taking care of the rent that they pay for their home. This is called House Rent Allowance, or HRA.

HRA gets special treatment in income tax laws, and is exempt from income tax to a certain extent. Here are the rules explained in simple terms.

If you are like most other salaried people, one of the components of your pay would be House Rent Allowance, or HRA. This is an allowance paid to the employee to defray the housing rent expense.

Since housing is one of the fundamental needs for us, the government treats it sympathetically, and gives us various tax breaks towards it.

Thus, you get income tax benefit when you take a home loan to buy a house. (Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage” for more details on this).

Similarly, there are income tax benefits on the House Rent Allowance (HRA) as well. The tax benefit on HRA is available under section 10 (13A) of the IT Act.

 

How much Income Tax (IT) exemption is available

The minimum of the following three is available as exemption from your income:

1. The actual HRA received from your employer

2. The actual rent paid by you for the house, minus 10% of your salary (this includes basic + dearness allowance, if any)

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)

 

Example

Let’s take the following example:

Basic: Rs. 15,000
DA: Rs. 5,000
HRA: Rs. 9,000

Rent paid: Rs. 10,000

You live in Mumbai.

Now let’s evaluate the above rules:

1. The actual HRA received from employer

This is Rs. 9,000

2. The actual rent paid for the house, minus 10% of salary

This would be Rs. 10,000 – 10% of (Rs. 15,000 + Rs. 5,000) = Rs. 10,000 – Rs. 2,000 = Rs. 8,000

3. 50% / 40% of your basic salary

Since you live in a metro, this would be 50% of Rs. 15,000 = Rs. 7,500.

The minimum of 1, 2 and 3 is Rs. 7,500. Therefore, the amount of HRA exempt from tax is Rs. 7,500 per month.

The remaining HRA amount of Rs. 1,500 (Actual HRA received Rs. 9,000 – exempt HRA Rs. 7,500 = Rs. 1,500) would be added to your income, and would be subject to income tax.

 

Who can claim HRA exemption

There are certain conditions that should be met for claiming IT benefit on HRA.

You can claim HRA exemption towards the rent paid by you, if:

  • You receive HRA as part of your salary
  • You pay the rent
  • You stay in the rented house for which you pay the rent
  • You do not own the house for which you are paying the rent

Thus, for example, you are paying the rent for a house in which your parents stay, but you stay in a different house. Then, you can not claim exemption for that. You yourself should be an occupant of the house.

 

Documents needed to claim HRA exemption

If the HRA you are claiming is less than Rs. 3,000 per month, no proof is needed. But if the amount you are claiming is more than Rs. 3,000 per month, you would need the following:

  • Rent receipts
  • Rental agreement

 

HRA and Home Loan

Many people get even more confused when it comes to HRA and home loan together. But it is quite simple, really.

In a nutshell: There is no restriction in the Income Tax (IT) Act about claiming home loan and HRA benefits together.

If you are staying in a rented accommodation, and have taken a home loan for purchase of a house, you can claim benefit for both HRA and the principal and interest components of the home loan.

(Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage” for more on IT benefits that you can get using a home loan).

You can claim these benefits even if you have rented out the house you have purchased through a home loan, and are yourself living in another rented accommodation.

The city where you own a house and the city where you work also has no significance: There can be different cities, or can be the same.

Note: Some companies insist that to claim HRA exemption, you would need to provide a declaration stating that in spite of owning a home, you are staying in a rented house due to a genuine reason.

Following are some of the reasons considered genuine:

  • The house you own is not conveniently located with respect to your workplace
  • Your parents are living in the house you own. So, you have to stay in a rented place.
  • The house you own is small. So, you have to rent a bigger house.
  • You have rented out the house you own. And you stay in another house that you have taken on rent.

 

Other important points to keep in mind

  • You can claim exemption for the rent paid to your parents, provided you actually pay the rent. You should get rent receipts for the same. Also, your parents would need to declare this income in their IT returns.
  • You can not claim rent paid to your spouse.
  • Only one of the spouses can claim HRA exemption – not both.

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Comments

  1. Anonymous says:

    Hi Saraju,

    House Rent Allowance (HRA) is exempt from income tax if you meet certain conditions (as mentioned in the article).

    If you don’t get any HRA, there is nothing that is exempt – even if you do pay rent.

    Thus, if you don’t get HRA, you would not get any income tax benefit on rent paid.

    Probably, you can negotiate with your employer and get some portion of your CTC salary as HRA.

  2. Ayush Agrawal says:

    hi,the query from mr. K.R.VAIDYANATHAN does not satisfied me. as already in law mentioned that actual rent paid should be more than 10% of basic salary.
    this query is worthless.

    regards,
    Ayush Agrawal

  3. K.R.VAIDYANATHAN says:

    Dear Sir,

    For exemple if the HRA received is Rs.58100 per annum, 10% of B.Pay is 23696/- , Room Rent paid Rs.1000/-p.m., 40% of salary is Rs.94784/-. My question is whether HRA EXEMPTION is ALLOWED for if the Room rent is paid lesser amount of actual HRA received and 10%of BPay excess over
    in rent paid? Pl.clarify

  4. Hello,

    The rule remains the same, irrespective of the amounts.

    Let’s see your situation:

    The minimum of the following three is available as exemption from your income:

    1. The actual HRA received from your employer: Rs. 58,100

    2. The actual rent paid by you for the house, minus 10% of your salary: Rs. 12,000 – Rs. 23,696 = – Rs. 11,696

    3. 40% of basic salary: Rs. 94,784

    The lesser of 1, 2 and 3 is the actual exemption that is available.

    In your case, the least amount is for no. 2, which is actually negative. Since the exemption can not be negative, the examption available to you would be Nil.

  5. Saraju Prasad says:

    Sir,
    If i am not getting HRA from the Employer then can i claim the income tax rebate on house rent paid.

    From Saraju Prasad

  6. Hi Milind,

    If you are paying the rent to your grandfather, you can claim HRA.

    You would beed to show the rental agreement and the monthly rent receipts.

    Please remember that the rent that your grandfather receives from you would be included in his income, and would be taxable in his hands.

  7. Hi,

    I am paying for the rental house Rs. 8000 per month in a non metro.
    So, the submission of rent receipts only will be fine or do I need to submit any lease agreement for that?
    I dont have a lease agreement . So please advice.

    Thanks.

  8. Hi Ruchi,

    The lease / rental agreement is not mandatory.

    but please ensure that the rent receipts carry the PAN numer of the landlord.

  9. Anonymous says:

    Hi Rakesh,

    Your officer is right – now, you do need your house owner’s PAN number on the rent receipts.

    If he doesn’t have a PAN, he can provide you a Form 60.

    (Please click here to download Form 60)

    (You need to be logged-in to download the form. Please take advantage of the free registration that takes less than a minute. To know the benefits of registration, please click here.)

  10. i am a govt employee and getting HRA Rs 1650 per month my officer said to give pan no of house owner in rent receipt but they have no PAN no. what should i have to DO.

    please reply
    thanks

  11. Anonymous says:

    Hi Shreepad,

    The HRA amount would be taxable in this case. (I am assuming that the accommodation is provided free of cost)

  12. Dear Sir

    Company has given accomadation to the employee and
    co is also paying HRA to the employee.

    can such employee can claim Hra exemption pl. advise

  13. Milind Kamthe says:

    Hi,
    I stay in a House which is owned by my Grandfather. I stay alongwith my parents. Can I still claim for the HRA?

    -MILIND

  14. My company will give me lease house in Non metro city, I am geeting HRA but they will deduct the same from my salary, How much imcome tax i have to pay for the lease house as the lease rent will come in my CTC but paid by comany.

  15. Dear Sir,

    Till last year when I submitted the HRA declarations to our employers, we just submitted an affidavit mentioning the place I was staying along with the Rent Reciepts.

    This year we have been asked to submit the PAN number also of the Landlord.

    I would like to know if from this year submitting the PAN number of the landlord is necessary or just an affidavit would suffice.

    Please clarify

  16. Anonymous says:

    Hi Ravi,

    The landlord’s PAN number has been made mandatory from this year.

    If your landlord doesn’t have a PAN number, you can submit a Form 60. (Download Form 60 from here – you need to be logged in).

  17. bharat santhalia says:

    how to get rebate/benefit on rented house.the land lord is not paying tax to the govt.,?

  18. Hi Bharat,

    Its not necessary that the landlord should be paying tax – he just needs to have a PAN number, or, can alternatively provide from 60.

    If you are getting an HRA, you can claim tax benefit as explained in this article. If you are not getting any HRA or are not salaried, you can claim tax benefit as explained in the article “Deduction for rent paid – Section 80GG“.

  19. Dear Raag Vamdatt,

    Firstly I would like to thank you for your service to the Indian community through disperal of the knowledge which was here-say available to Rich or cam down by family only.

    My Situation : I have a housing loan from a nationalised bank taken in Year 2000-2001. The House is in Bangalore rural area under the jurisdiction of Village panchayath. The Bank is located in Bangalore metro area coming under Bangalore Municipal jurisdiction. I have been paying my EMi’s regularly for all 8yrs and availed tax benefit also.

    I was a resident of that home till August 2008. In 2008-2009 I have moved into bangalore Metro area and living in a rented house. I pay rent for current residence and also the EMI for my mortgaged home.

    Question : Can I avail tax benefit through HRA and also housing loan payment for year 2008-2009? If yes, can i continue to do so even in year 2009-2010 even if I put my mortaged home on rent/lease to a third party.

  20. Dear HSRao,

    Thanks for the very kind words…. I have gained some knowledge through my experience, and I try my best to spread it! Thanks for the encouragement…

    Coming to your situation: Yes, you can get tax benefit for both home loan repayment and through HRA exemption. You can state that you are staying in the current residence as the location of your own house is inconvenient for your job. (Which I believe would be the case).

    And yes, you can do this even if you rent or lease your mortgaged house.

  21. Hi Owais,

    If the house is not provided by the company, you can claim exemption of HRA as described in this article.

    If you do not get HRA, you can still get deduction of rent paid (within certain limits) under section 80GG. I would write in detail about it soon.

  22. Hello,

    I would like to know the methodology of calculating the non taxable amount of salary if the house is taken on lease (not provided by company).

    Best regards,
    Owais

  23. Hi Pramath,

    You can claim HRA exemption only for a house for which you pay rent and in which you are living.

    Thus, you would not be able to get any tax benefit for the rent you are paying for your family’s house.

  24. Bhavin Kamdar says:

    Hi,

    Salaried individuals can claim rent paid by them for residential accommodation, if HRA doesn’t form part of their salary. This deduction is available under Section 80GG and is least of the following:

    25% of the total income or,
    Rs 2,000 per month or,
    Excess of rent paid over 10% of total income
    Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.

    Sir, Raagvamdatt, might like to comment on this

  25. Hi Mukesh,

    When an accommodation is provided by your employer and is taken on rent / lease by the employer, the prequisite value is:

    - 20% of the salary, or the actual amount paid for lease rental by the employer, whichever is lower
    - reduced by the amount of rent paid by the employee

    Thus, in your case, the perquisite value of the house would be 20% of your salary, or the actual lease amount paid by the employer (whichever is lower) less the HRA that is being deducted from your salary.

  26. Pramath Sanghavi says:

    I am working at one location and paying rent A. My family is staying at other location and paying rent B.

    Can i claim Tax Relief against amount (A+B)?

    If yes, please let me know the rule number.

    Otherwise, which one I can claim against HRA?

  27. I have taken a small accomodation near by my office and it is company leased. Company issue the cheque to land lord and subsequently deduct the amount from my salary. I have also taken other accomodation in other city and also paying high rent there.
    Can I claims both HRA exemptions or any one of my choice..

    thanks

  28. Dear Sir,

    I have a housing loan i am occupied the house which is housing loan. if i am claimed Intt. and principal amount. what than HRA received allowed or not.

    pls. help me.

    Thanks

  29. Hi Ravi,

    You can claim HRA exemption only for the house for which you pay rent and in which you are actually living.

    Thus, you would not be able to claim HRA exemption for the house in another city.

    Also, the company provided house would be treated as a perquisite (perk).

    The prequisite value is:

    - 20% of the salary, or the actual amount paid for lease rental by the employer, whichever is lower

    - Less the amount of rent paid by the employee

    Thus, in your case, the perquisite value of the house would be 20% of your salary, or the actual lease amount paid by the employer (whichever is lower) less the amount that is being deducted from your salary.

    If the company deducts the full amount, the perquisite value would be Zero.

    (For full details on valuing a house as a perk, please check out the article “Perquisite (perk) value of a company provided house“)

  30. Hi Dev,

    You can definitely receive the HRA even if you have a house and are staying in it – if that is what you are asking.

    But I believe you are asking if HRA would be taxable or exempt.

    In your case, you are staying in a house owned by you (you are not paying any rent). Therefore, the HRA would be taxable in your hands.

  31. mukund v jewlikar says:

    I AM SALARIOED PERSON AND ALSO I RECEIVED THE RENT FROM MY HOUSE PROPERTY. PL GIVE SUGGATION HOW IT SHOWN IN MY COMPUTETION OF INCOME.
    RGARDS,
    M V JEWLIKAR.

  32. Anonymous says:

    Hi Sham,

    DA has to be added in this calculation.

    The minimum of the following three is available as exemption from your income:

    1. The actual HRA received

    (Rs. 31,452 in your case)

    2. The actual rent paid by you for the house, minus 10% of your salary (this includes basic + dearness allowance)

    (Rs. 2,200 * 10) – Rs. 16,582 = Rs. 5,814 in your case.

    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)

    Please calculate this value (I can not do it as I do not know your basic, and the city in which you live) to find the amount that you can claim as exempt – the minimum of 1, 2 and 3 is the amount that can be claimed.

  33. sham wagh says:

    If i am getting hra @Rs.31452 per anum. I am paying house rent @Rs.2200/- p.m.from June 2008. My annual Salary is (Basic + D.a.)Rs.165822/- How much exemption can i get? In salary D.P.is to be added or not? Ps Clarify.

  34. Anonymous says:

    Hi Mukund,

    The rent income would be added under the head “Income from House Property”, and is taxable.

    Of course, you would get the standard deduction and deduction of any municipal taxes paid for the rented property.

  35. Raghvendra says:

    Hi,

    I was living in an rented accomodation in Borivali since Jan 08, & in 28 /03/2008 i did registration of my flat in Borivali Itself.

    However, i got possession of my flat on 28/08/08 & thus shifted on 15/09/08 in my house.

    Now, my question is can i claim HRA through rent receipts for months April till 15th Sep & also get the Housing Loan benefit?

    If Yes, kindly provide me the Exact Section under IT act which deals with such scenario, as my co. is only providing me Housing Loan Benefit.
    Pls help.

  36. Anonymous says:

    Hi Raghvendra,

    This depends on whether you had been claiming the housing loan benefits from FY 2007-08 itself. Let me explain.

    HRA exemption is allowed if you are staying in a rented place, provided you do not own a house in the same city. (If you own a house, there has to be a valid reason for you not staying there – like it is given out on rent, or if your parents are staying there).

    If you claimed home loan benefit in FY 2007-08, it means that you had implicitly declared the house as self cooupied. It implies that you declared that you were living there – in which case you can’t be living in a rented place, and HRA exemption would not be allowed.

    If you didn’t claim any income tax benefit in FY 2007-2008 for the home loan, you would be able to claim both HRA exemption and home loan benefit for FY 2008-09.

    Home loan benefits can be claimed starting from the year in which you get possession of the house. Since you got posession in Aug 2008, you can claim home loan benefit for the enitre FY 2008-2009.

    Also, cince you were staying in a rented house till Aug 2008, you can claim exemption of the HRA received till then – subject to the limit as calculated using the rules mentioned in this article (minimum of the 3 points).

    Sections:

    HRA exemption: Section 10(13A)
    Home loan benefits: Section 80C (principal) and Section 24 (Interest).

  37. Thanks a lot !!!

  38. Company is providing me a leased accomodation . This is facilitaion of accomodation , where by company enters into an agreement and pays the landlord. Total amount paid is 15000. My HRA comes around 10000, which is shown on my salary and equal amount (10000) is shown as rent recovery. differetial amount of 5000 p.m is deducted at year end (total – Rs 60000).

    In this situation company is only collecting the rent and paying it. Can we claim HRA benifit u/s 10(13A)

    Can company charge perquisite

    I reside in Mumbai.

    Can you help me and if you could also suggets some judgements/case laws , i will be very thankful to you.

    Partha

  39. RAMA KANT says:

    i am employe in UPRVUNL. previous year we were added in our income the HRA @ Rs 370 i.e. of Rs 4440/- per year. now the sixth pay commission has been implemented . kindly advice me how many HRA to added in our income in this year

  40. RAMA KANT says:

    am employe in UPRVUNL. previous year we were added in our income the HRA @ Rs 370 i.e. of Rs 4440/- per year. now the sixth pay commission has been implemented . here is some confusion, some are sying that the HRA will be added in our income @ 7.5% of total salary of 12 months and some are saying that HRA will be added in our income @ 7.5% of Basic of 12 months, kindly advice me how many HRA to added in our income in this year.

  41. Hi,

    If i am not getting HRA from the Employer then can i claim the income tax rebate on house rent paid.

    regards
    Ketan

  42. Anonymous says:

    Hi Rama Kant,

    How much HRA you get is determined through your pay package, which in turn is determined by your employer.

    Therefore, you should contact your HR department to find out the exact HRA amount that you would receive.

  43. Anonymous says:

    Hi Ketan,

    Yes, you can.

    Please read the article “Deduction for rent paid – Section 80GG“.

  44. Anonymous says:

    Hi Partha,

    A company provided accommodation is a perk, and HRA is an allowance. They are not related.

    Any perk value would be added to your income and would be taxed, whice HRA exemption can be claimed upto the defined limit.

    So, you should be able to claim HRA exemption as per the calculations shown in this article. The rent you are paying would be Rs. 15,000, and the HRA you get is Rs. 10,000.

    The perquisite value of a house needs an article of its own! I would write it soon.

    Thanks for suggesting a good topic!

    (Update: Please check out the article “Perquisite (perk) value of a company provided house“)

  45. Anonymous says:

    Hi,

    Can you please let me know how salary structure is done
    Suppose CTC is 3L, how does the HR/Company decides how much amount should be given in each component say like Basic+DA+HRA+Supplementary Allowance etc…..

    regards
    Ketan

  46. Raghvendra says:

    Thank you for your kind information.

    I stay in a metro i.e Mumbai could you pls clarify for calculation of HRA Exemption is there any rule such as
    Rent paid – 10% of Basic?

    As i my case i have claimed rent paid for Months – April 08 to 15th Sep 08 @ 15000 pm. whereas my company is calculating exemption as Rs 12000 pm for months April to August & 6000 for Sep.

    Kindly help.

    Pls let me know how much HRA exemption can i get as my basic is 30000. & there is no d.a allowance.

  47. Debashis says:

    My persent HRA is Rs.3000/- per month and my net income is 190000 per ammum. I have three LIc policy and premium given 25000/- per ammum. Can I take benefit of my HRA at the time of return file.

  48. Ashish Gupta says:

    Dear Sir,

    I have one query-If the rent has been paid through cheques, still do we need to produce the rent slips to the employer. further I am staying with my friends in a rented accomodation and the rent agreement is in the name of my friends. Although I have obtained a letter from them that I am sharing all the relevant expenditure in the equal ratio. Can I still claim the HRA exemption. pls revert.
    Thanks
    Ashish

  49. Ashish Gupta says:

    Sir,

    One more query. If the HRA could not be claimed through employer, can we claim the same at the time of filing the return from our end.In other words is this mendatory to claim the HRA from employer’s end only. Can’t we claim it from our end while filing the return
    Thanks,
    Ashish

  50. Anonymous says:

    Hi Ketan,

    The salary structure is decided by the company keeping in mind the total cost to the company (CTC), as well as the prevailing income tax rules so that the employee can maximize his post-tax take home pay.

    Of course, companies also keep in mind the rank and hierarchy of employees when deciding the basic, and the overall pay.

    In fact, some companies also allow the employees to structure their pay to a cernatin degree. For example, if I stay in my own house and do not pay any rent, these is no point in getting the HRA, as it won’t be tax-fee for me. In that case, I can opt for, say, higher LTA in leiu of HRA.

  51. Anonymous says:

    Hi Raghvendra,

    Yes, there is a condition “rent paid – 10% of salary”. (Its salary – meaning basic + DA, and not just the basic).

    Please see the “How much Income Tax (IT) exemption is available” section of the article above to know the exact rule for calculation and to find your allowable exemption.

  52. Anonymous says:

    Hi Venkatesh,

    Let’s understand that you do not claim exemption of rent – you claim exemption of the HRA received (after all, HRA is your income, not rent!).

    Obviously, you can claim exemption of an income only if you have received it.

    So, if you have received HRA from your previous employer (from Apr08 to Aug08), you can claim exemption of that HRA as well as HRA received after Sep08.

    However, if you did not receive HRA from your previous employer or were not employed during that period (basically – you did not get HRA), you can not get any tax benefit for the rent paid during that time.

  53. Venkatesh says:

    Hi,

    If an employee joins Sep08, can he claim the rent exemption from April08.

    Regards
    S.Venkatesh

  54. avss.prasad says:

    sir,
    can we adjust the loss from chit in salary incomeof an individual. is it possible to adjust. can u pl . clarify me.

    prasad.a

  55. Anonymous says:

    Hi Ashish,

    Rent slips are mandatory for claiming exemption of HRA. These are needed even if the payment is made through cheques.

    You should be able to claim the exemption even if the rent agreement in their name – its good that you have obtained the letter about your share.

    But please note that your share of only the rent paid (no other expenses – like food, laundry, etc if applicable) would be considered for calculating the exempt HRA amount.

    It is not mandatory to claim ANY deduction or exemption through the employer. This includes HRA exemption as well.

    You can always claim any deduction or exemption at the time of filing the return. You would be claiming refund for any extra tax paid.

    The advantage of doing it through the employer is that the employer would deduct proportionately less TDS, and you would get more in-hand every month.

  56. avss.prasad says:

    sir,
    i prasad.a have seen ur. replies to the doubts from persons like me. in one of your answers u have mentioned that p a n no. of the landlord made mandatory by the govt. from current year. but nothing is mentioned in the act, or in tax mann reckoner. if the landlord does not have p a n no. then he must file form-60 read with rule 114-B. But 114-B says the transactions related to sale/ purchase, bank ransactions etc., nothing is mentioned, or discussed about the h r a exemption.
    sir, my doubt is i need more clarification from your end about the pan no. of landlord.

    thaking you sir,

    prasad.a

  57. Anonymous says:

    Hi Prasad,

    I am not a legal expert, so wouldn’t be able to quote an exact rule. But I believe this was clarified through a circular.

  58. Anonymous says:

    Hi Prasad,

    I do not have much knowledge about how chit funds work – so wouldn’t be able to help you here.

    If you have knowledge about these funds, please let me (and other readers) know about them through the comments.

  59. Hi Sir,

    Mine is a typical case, please let me know what to do in the below case:

    I worked in Company A from April 2007 to March 2008 &

    I worked in Company B from December 2008 to March 2008.

    (I worked in 2 companies simulataneously for 4 months because of some HR issues)

    Now, I have received Form 16 from Company A for the entire year and also Form 16 from Compan y B for 4 months.

    I havent submitted House Rent Receipts to company A nor company B.

    To give figures my Basic in company A is 13000 and my HRA is 7500 ( 60% of Basic)
    my Basic is company B is 16500 and my HRA in that company is 6500 ( 40% of Basic)

    Now in my Company A’s form 16, the exemption given under HRA is 0
    in company B’s Form 16, the exemption given under HRA is 9500

    Both the companies are situated in a Non-Metro.

    I met one of the auditor and he was saying to caluculate the HRA from March 2007 to November 2007 with company A to caluculate HRA from December 2007 to March 2008 with company B ( as company B already has given the exemtion of 9000 in form 16)

    I am a bit confused in caluculating HRA. Could you please help me in caluculating my HRA in the above case.

    Your assistance in this regard is highly appreciated.

    Thank you,

    Krishna

  60. Ashish Gupta says:

    Thanks a ton sir..This information is really very useful for me.

  61. Anonymous says:

    Hi Krishna,

    Your case in complicated, I agree!

    First of all, I am a little confused how the company B gave you HRA exemption of Rs. 9,500 when you have not submitted any rent receipts – this is a mystery.

    In any case, let’s come to your situation.

    For Apr – Nov 2007, obviously you would consider the pay and HRA from comnpany A.

    In my opinion, for Dec 2007 – Mar 2008, you can add up the salary and HRA amounts received from both companies to find out the exempt amount as described in this article.

  62. Anonymous says:

    Hi Debashis,

    Yes, you can claim income tax benefit (eemption) for the HRA you receive. Please do that as per the guidelines mentioned in this article.

    The premium of Rs. 25,000 paid for LIC policies can also be claimed as deduction from your income under section 80C.

    Please read “Saving Income Tax – Understanding Section 80C Deductions” for more.

  63. Query on the HRA says:

    Hi Raag,

    I made number of mistakes while quoting the article so posting it again.

    I am staying on a rented place with my Parents. Now I bought a flat in the same building. Since I stay with my brothers and the family size is the really big (7 Poeple). we are using both the flats now.

    Since I am already showing the HRA and I want to continue to show the HRA and do not take benifit on the Home Loan.

    Is this is correct to do?

    As per your ealier comment in the article. It seems to be Ok.

    Can I actually claim HRA as well as Home Loan Benefit as well.

  64. Prasad Kathuria says:

    Sir,

    I am having company provided accomodation – flat in PUNE. This flat is owned by Company. Company is deducting rent on accord of it Rs. 3500 per month from my salary, same is reflected in salary slip. My HRA is Rs. 2000 per month.
    Please suggest me what will be the HRA exemption under section 10, and calculation for prequiste for the same. My Gross Salary is Rs. 5,40,000 before any standard deduction.

    Kindly reply me on my mail ID – prasadkathuria@bharatforge.com

    Regards,

    Prasad Kathuria
    Cell – 09881156190

  65. Hi Raag,

    I am staying on a rented place with my Parents. Now I bought a flat in the same building. Since my I stay with my brothers and the family size is the really big (7 Poeple). we are using both the flats now.

    Since I am already showing the HRA and I want to continue to show the HRA and do not take benifit on the Home Loan.

    Is this is correct to do?

    As my your ealier commnet in the article. It seems to be Ok.

    Can I actually claim HRA as well as Home Loan Benifit as well.

  66. Bhavin Damania says:

    Hi,

    Just one more clarification required, if the answer to the above question is no, can I claim HRA exemption for either of the house, say for Mumbai one only?

    Thanks.

  67. Bhavin Damania says:

    Thanks sir….

  68. Bhavin Damania says:

    Hi,

    I am curretnly working in Pune and have rented accomodation here. My family resides at Mumbai. Since Mumbai is not far from Pune I travel there every weekends. So I pay rent to my parents as well. I have the travel tickets as well to show as proof. In my earlier company, when I was in Mumbai, I was claiming HRA exemption for Mumbai accomodation as I was paying rent to my parents.

    My question is since I actually live in two houses and I can produce the rent receipts and agreements for both houses, Can I claim HRA exemption for both Houses? Kindly revert asap since I have to submit declaration for the same today itself and I am bit confused. If yes, then whether its covered in Sec 10(13A) itself or there is some case study?

    Thanks.

  69. Anonymous says:

    Hi Prasad,

    I have written a detaild article on this – please check out “Perquisite (perk) value of a company provided house“.

  70. Anonymous says:

    Hi Amit,

    You own a flat in the same city in which you are living, and you are in fact living in it (as a part of the family).

    Therefore, it would be difficult to convince the assessing officer (AO) that you can claim HRA.

    If you can show that your parents are living in the apartment owned by you, and you are living in the rented place, then you can claim HRA exemption.

    And yes, you can claim housing loan benefit in any case.

  71. Anonymous says:

    Hi Bhavin,

    HRA can be claimed only for 1 house. And it has to be a house in which you are staying.

    You would be considered to be staying in your Pune house. Therefore, you can claim HRA exemption only for the rent paid for your Pune house.

  72. Anonymous says:

    Hi Gordon,

    I do not know much about ODSP (Ontario Disability). Can you please clarify?

    Sorry!

  73. Gordon Atkinson says:

    I have not filed for income tax for seven years and have lived at various addreses during that time period.At one adress, I lived in a rented room for about three years and lost all of my rent reciepts. I am On ODSP (Ontario Disability) and now I rent to file my tax. Problem is the guy who owned that rooming house where I was for three years sold it so now there’s not a record of my time there. Is there someway I can still claim that adress on my income tax?

  74. Khurshid says:

    Pls. Confirm me HRA receipts with PAN no owner if yes so pls provide notification no. or circular

  75. Hi ,

    I am staying in a rented house at Delhi which has a company leased agreement.Every month from my salary Rs 10,000 is duducted towrds rent to my house owner account.

    Is the CLA is taxable ? yesterday i came to know that everymonth arround Rs 2.800 is deducted as tax from my salary towards CLA apart from the rent .

    My HRA component is RS 112000 per annum.

    Please suggest how i can save this tax amountRs 2,800.

    Please mentioned the calculation of CLA.

    Regards,
    Satya

  76. Anonymous says:

    Hello Raag,
    I am currently working for a company from Pune.
    I had taken a transfer from Mumbai to Pune in the same company, but my husband (working in the same company) and in-laws are still residing in Mumbai.
    I am still paying a rent for the mumbai house and have a agreement ,also I travel to Mumbai frequently.
    I will not claim HRA for the Pune house.
    Can I claim HRA for my Mumbai house?

  77. Anonymous says:

    Hi Satya,

    Please check out Perquisite (perk) value of a company provided house for all the details and calculations.

  78. if both, spous working in an organition and getting salary both . then what would be the HRA calculation for both
    1- are both entitled to exemption of HRA”
    both living in same house on rent
    2- and they both entitled to take deduction of 80-c education fee of their children seperatly

  79. Mohan Bhaskar says:

    Sir,
    I am working in Construction Company, I am getting HRA Rs. 3192/- PM thru Salary and also i am getting Reimbursement of Rent Rs.2500/- . Now, i want to know calculation of HRA Exemption.

    Regards
    Mohan Bhaskar

  80. Anonymous says:

    Hi Umrav,

    There is no restriction of claiming HRA exemption / 80C deduction by spouses.

    However, there is a general rule – tax benefit can not be claimed by two people for the same thing.

    Thus, if you pay rent, you can claim HRA exemption. Similarly, if your spouse pays rent, s/he can claim HRA exemption. Both can not claim HRA exemption for the same rent paid!

    Similarly, if you are paying the fee for one child, and your spouse is paying the education fee for another child, both can claim its deduction under section 80C. But both can’t claim deduction for the same fee paid.

  81. Anonymous says:

    Hi Mohan,

    Please calculate the HRA exemption as described in this article. However, please reduce the actual rent paid by the amount of reimbursement.

    Thus, if rent paid is Rs. 7,000 per month, consider only Rs. 4,500 for calculation HRA exemption.

  82. Anonymous says:

    Hi,

    Since you work in Pune and do not live in your Mumbai house, you would not be able to claim HRA exemption due to rent paid for the Mumbai house.

  83. Anonymous says:

    Hi Khurshid,

    I do not have the circular number, but PAN number is mandatory on the rent receipt now if you want to claim HRA exemption. If the landlord / house owner doesn’t have a PAN number, a form 60 would be needed.

  84. Anonymous says:

    Hi Kamesh,

    Thanks – I am glad you liked the information on this website.

    An employee can not “declare” some portion of his salary as HRA. There has to be a specific component in the salary called “HRA”.

    Only then, that component can be claimed as exempt from income tax as per the limits mentioned in the article.

  85. Anonymous says:

    Hi Mr. RaagVamdatt,

    Thanks for providing such an informative site to all…

    I have a question…

    If for an example..a salaried employee gets 10000 Rs basic with no demarcation of fixed HRA from company.

    Can he declare HRA for Rs 6000/- or the maximum amount he can declare is 50% of the basic i.e. Rs 5000/-?

    Coz as per the information given by you the least of 3 is taken..
    1) HRA is not provided by company in breakup to employee so HRA can be declared by employee himself..Option ruled out.
    2) 50 % of Basic–Rs 5000/-
    3) Rent Paid(Rs 6000)-10% of Basic–Rs 5000, however if we can declare max 50% of Basic then it will come down to Rs 4000 which will be minimum of all the three…

    So can an employee declare his HRA for more than 50% of his basic salary?

    Thanks & Regards
    Kamesh Jain

  86. Arindam says:

    Hi

    I am staying in Gurgaon.The no 3 points of HRA rebate is 50% for metro city and 40% for non-metro. Whether gurgaom comes under Delhi metro or nort for HRA rebate. As per Ministry of India’s O.M no 11023/1/86-E.II(B) dt. 09.12.86 HRA/CCA at Delhi rates in Gurgaon, HRA paid in government company is at the rate of Gurgaon. What about the HRA rebate?

    Thanks in advance

  87. Anonymous says:

    Hi Arindam,

    Since Gurgaon is a part of the NCR region, I believe the 50% for metro city should be applicable to it.

  88. Anonymous says:

    Hi Ajay,

    You can claim HRA exemption only if it is a component of your salary.

  89. Anonymous says:

    Hi,
    I recevied the HRA companent with my previous employer, but not given the rent receipt on time.Hence not consider in Form 16,. Can i claim it at the time of filing my IT retuen with income tax deptt.

  90. I did not submit the rent proof to my company on time.
    Hence they deducted the tax and provided me form 16 with the same thing i.e. without the HRA tax deduction.
    I know I can claim the tax benefit now to IT office while filing the return. but what is the exact procedure to claim HRA tax benefit while filing IT return?
    Do I need to get new form 16 from the employer?
    Thanks,
    Rad

  91. Anonymous says:

    Hi Sudkam,

    Yes, definitely you can.

  92. Anonymous says:

    Dear Raagvam, Kindly clarify the following case.
    I have a house loan, presently self occupied, got possession in last July 2008. Full amount of loan (10Lacks + Self investment), was paid to the builder (KMDA) on April 2004. Current Year interest component of the loan is 1.08 L and cumulative interest (pre EMI) is 2.8 Lacks excluding current year.
    As I have got possession this year, I am claiming the benefit of Housing loan from this year. I am entitled to claim 1,50,000/- as loss against house property (Interest component only, EMI + pre EMI), which I have mentioned in column 1g) of schedule HP.
    In this regard I have the following doubts:
    1. As I have interest loss = 1.08 L + 20% of 2.8 L = 1.08 L + 0.56 L = 1.64 Lacks, what amount I should mention at 1g) of Schedule HP.
    2. What happen to the remaining part of 20% ie 1.64-1.5 = 0.14 Lacks? That will be carrying forward to next year or simply waste?
    3. Whether I have to mention the pre EMI losses (ie earlier interest components) year wise at column vi), vii),…….xii) of schedule CFL of ITR 2 ? if so, if any other extra form/return of losses to be filled up? And what I will write in the column HP Loss aof current year at Sch. CFL.

  93. Hi

    I am an IT engineer in PSU on contractual basis. Our salary is paid as a cheque. and there is no HRA . so please suggest how i can take exemtion of HRA from Income tax department 9India)

  94. Anonymous says:

    Dear Raagvam
    Thanks a lot for your valuable sugession. Now i can fill ITR2 confidently from your tutorial. Regards

  95. Anonymous says:

    Hi Barundas,

    1. Please mention Rs. 1.5 Lakhs, as that is the upper limit for claiming interest u/s 24.

    2. You can not carry forward a part of pre-EMI interest (or interest paid through EMIs). You can only carry forward a loss from house property (as calculated in schedule HP) if it can’t be set off against anything else.

    Thus, Rs. 0.14 Lakhs would indeed get wasted.

    3. As I mentioned, you can carry forward loss from house property, not interest paid.

    Thus, you don’t have to mention the pre-EMI interest in schedule CFL.

    Keep adding 20% of the pre-EMI interest for the next 5 years as well, and fill in field “g” accordingly. Ideally, over the next 4 years, interest component of the EMI would go down – so unlike this year, a portion of the pre-EMI interest would not go waste. (Or, a smaller portion would go waste).

  96. Anonymous says:

    Hi Arjun,

    This should not be a problem. Just make sure that she shows the rent as income in her IT return.

  97. Arjun Dasgupta says:

    Hi,
    My parents and I stay in the same place. My mother is a co-owner of the house. If I pay rent to my mother and claim deduction, she have to produce the same in the IT return. There the address of the house she stays and the address of the rented property will be the same. Will there be any problem in this? Please clarify.
    Thanks,
    Arjun

  98. Anonymous says:

    Hi Rad,

    No, you do not need a new Form 16.

    Just include the HRA exemption in your income tax calculation. Thus, you would arrive at an amount X for tax payable. Against it, you would show that you have paid an amount Y as tax already (as TDS).

    Since Y would be > X, you would claim a refund.

  99. Shweta Sharma says:

    Hi ,

    Amount of HRA computed by Employer is wrong .
    Now they are not ready to give a revised form 16.

    As per my calculation amount to be exempted under HRA should be Rs. 12006/- only .

    But in Form 16 provided by employer it is only Rs. 8519/-.

    My Basic / month is Rs. 11667/-

    No . of months to be claimed = 9

    Rent/month= Rs 2500/-

    As per calculation it is ( 2500-10% 11667)* 9 = 12006

    Monthly HRA provided by Org. = Rs. 5843/-

    How can i claim the rest of the amount ?

  100. Anonymous says:

    Hi Shweta,

    Not sure why your organization didn’t accept the right amount.

    You can always claim the right amount while you file the IR return, and claim a refund.

  101. Hemant Kumar says:

    I worked in two companies in last financial year, First company has not given the benefit of HRA Exemptionin Form-16 (4-Months) though I was getting HRA from Company.
    I got the benefit of 8-Months from 2nd company. Can I claim in ITR. If yes then how I can claim the benefit as there is no head visible in ITR-1.
    Please advise me

  102. Anonymous says:

    Hi Hemant Kumar,

    Yes, you can.

    Please file ITR2 – you can mention this amount in Schedule S – 2 (Allowances exempt under section 10).

  103. i am a salaried employee getting hra. i live with my parents in a house owned by my father’s HUF. if i pay rent to my father’s HUF, can i claim hra exemption?

  104. Anonymous says:

    Hi Apoorv,

    You would be able to do this if you are a member of the HUF (which I believe you would be).

  105. N Santosh says:

    Hi,

    I recently switched my company and joined the new one in mid July 2009.

    I forgot to submit my rent receipts to my previous employer for the months
    of April, May, June, July for year 2009, hence the Full and Final Settlement
    does not include the HRA exemption for this period.

    Can I claim the same amount from the T department at the end of the year by submissiion of these receipts,
    since my new organization will only consider HRA exemption post my joining date?

    If yes what documents apart fom the rent receipts are needed and wht details need to be filled?

    Regards,
    N.Santosh

  106. Dear Sir,
    I am a retired senior citizen. But my wife is a school teacher. Can I issue House rent receipt to my wife, so that she can claim HRA deduction. If children can claim, why not wife ?
    Pl advise.

  107. Dear Verendra,

    Yes, technically, you should be able to do this. However, the nature of husband-wife relationship is such that they are obviously expected to stay together.

    Thus, in all probability, the assessing officer (AO) would reject this claim as a means of evading income tax.

  108. Hi Santosh,

    Yes, you can. No other docs would be required except for the rent receipts.

    Basically, although your employer would not have shown the HRA exemption in form 16, you would claim it, and claim a refund.

  109. Hi,

    Pl explain the rent free accomodation provided to employee to be taxed in the new proposed tax code. Also HRA treatment in new tax code.

  110. Hi Sansei,

    I haven’t spent too much time analyzing the new code, as it is just a first draft and would undergo substantial revisions.

    As and when the details are finalized, I would write in detail about the provisions.

  111. ajee ashokan says:

    can i claim HRA from two employers

  112. Anonymous says:

    Hi Ajee,

    Yes, you can, as long as you satisfy the conditions listed in this article.

  113. I am staying with my parents and the house is in my father’s name. Can I pay rent to my mother and claim HRA?

  114. Sunil Virmani says:

    PAN number of house owner on the rental receipt is required for HRA exemption under section 10 of IT

  115. Siddharth Mujumdar says:

    Dear Sir,

    I have just reproduced the conditions mentioned above as follows :

    Who can claim HRA exemption

    There are certain conditions that should be met for claiming IT benefit on HRA.

    You can claim HRA exemption towards the rent paid by you, if:

    You receive HRA as part of your salary
    You pay the rent
    You stay in the rented house for which you pay the rent
    You do not own the house for which you are paying the rent
    Thus, for example, you are paying the rent for a house in which your parents stay, but you stay in a different house. Then, you can not claim exemption for that. You yourself should be an occupant of the house.

    Documents needed to claim HRA exemption

    If the HRA you are claiming is less than Rs. 3,000 per month, no proof is needed. But if the amount you are claiming is more than Rs. 3,000 per month, you would need the following:

    Rent receipts
    Rental agreement

    Now my question is can you give me a specific rule or section or case law in which above conditions are clearly mentioned.

    Thanks & Regards,
    Siddharth

  116. Ganesh Jee says:

    Please mention the required rule of Income tax act in suporting of following statements—-If the HRA you are claiming is less than Rs. 3,000 per month, no proof is needed. But if the amount you are claiming is more than Rs. 3,000 per month, you would need the following:

    Rent receipts
    Rental agreement

  117. Hi Sir,
    I am getting HRA@8866 per annum. My Gross total income for the 2009-2010 would be Rs.291000(including HRA). As Section 80C allows for deduction upto Rs 100,000 p.a. and i Have invested Rs 100000 in the form of Life Insurance Premium, then my net total taxable income would be Rs 291000-Rs 160000(Standard deduction)-Rs 100000 = Rs 31000. I am paying Rs 3500 per month as a rent to my owner. Now can I claim exemption of HRA? If yes please tell me how much can I Claim in terms of rupees and What are the necessary document I have to produce for this claim and if the landlord refuses to give necessary documents What should I do? and If he agrees and having PAN no. then from where should I get the Rented Slips?
    Please clarify?
    Thanks
    Gagan

  118. Hi,

    I forgot to submit the RENT receipts to my previous employer hence in the form 16 HRA exemption is showing as 0.
    My current employer will only exempt for the period i stayed dusring the financial year.
    Can you please advice me what can be done for my case.

    Is it possible to submit the rent receipt to my previous employer now.

    If i can only claim at the time of filing with IT what should i need to do during that time, do i need to submit any specific form.

    Thanks,
    CB

  119. Pankaj Arsekar says:

    Hi

    Some very nice articles published here. Very well wrtitten.
    I have just got the possession of my House in Pune and will be moving there shortly. I work in Pune.
    But my parents stay in mumbai in a rented house and i pay the rent for that house.
    So can i claim HRA benefits for both home loan and rent paid ?

  120. RL N Bhat says:

    I am working for a Govt company and my basic +gradepay is 21400/- per month and I am drawing HRA of 4280/- )i.e 20% of the above, where as i am paying the actual rent of 7500/- pm, how much tax exemption can I awail per annum and is it to be with in the limits of Rs. 1 lakh per annum only as I am having the other savings of Rs. 30,000/- which are exempted .

  121. My basic is 14780. My HRA is 5000 . working in pune. i was bachelor till july 2009. Taken a house on rent for Rs.7600 and taking the monthly receipts.

    What will be my HRA exemption? my whole year basic/hra will be considered or only eight months basic/hra will be considered for calculation.

    kindly clarify

  122. Home i live in is in the name of my father.
    My father is eligible for TAX.
    Can it be possible for me to show that i will be paying rent to my mother.
    Please provide some solution.

  123. richard says:

    My basic is 13,750. and I do not have hra but they do deducte from my salary as houserent (or house maintance allowane) rs. 1300/-. Do I get a benefit for this, i mean a house rent benefit in the 1, lac we save.? can we show this as a amount that has been taken from my salary and will i get any benefit in regard to this. Please expalin in simple english coz i am not very sure about all this tax andstuff.

  124. Basic 6,250
    HRA 3,750
    Medical 1,250
    Conveyance 800
    Special Allowance 8,450
    Monthly Incentive 1,875
    Total of A (Gross Pay) 22,375

    PF (Employees contribution ) 750
    Profession Tax 200
    Total deductions 950

    Net Take Home 21,425

    How much my income tax would be of this salary
    and if my basic increase or my hra increase how would it reflect my income tax.

  125. Surya /Dasari says:

    Dear Sir,

    Here i am facing problem with perk calculation (COA).As per my client requirement they want deduction transport allowances(9600) and medical Exemption(15000) from annual no pekable amount based on this system should calcualte perk.

  126. Hi,
    I forgot to give rent receipts to my last employer and I know I can claim while filing returns but what’s the process for that. Do, I need to submit rent reciepts to tax department with any other form? or just mention it while filing return and submit no documents ….

  127. i am a married and iam staying with my Husband whose owns the house…he claims tax benefit by showing his loan income.
    Is there any possibility i can claim HRA

  128. Nishit Parikh says:

    I live in ahmedabad. I have bought flat in 2006-07 and since then i was taking benefit of housing loan principal and intrest payment in my tax returns upto 2008-09. Please note that the house and loan taken on joint name i.e. first my name and second my mother’s name. Now in 2009-10, i have decided to move to another rented flat in same city with my spouse and my mother continued to live in the flat which we bought in 2006-07. Hence, i have asked for HRA exemption in 2009-10 but my employer being reluctant to grant that by giving me argument that it is technically not correct. Is this really true ? It is not possible that i should be granted HRA exemption for 2009-10 evenif my mother would take benefit of housing loan principal and intrest payment in her tax return for 2009-10 and not me.

  129. 1. I bought a residential plot and sold it with a gain of 50000/- within 2 months, how much tax i have to pay on this gain of 50000/- ?

    2. If i invest this gain of 50000/- in buying a flat within 2 months then do i have to pay any tax ? if yes how much ?

  130. Can I Submit RENTAL AGREEMENT at the time of filin IT Return.
    I did not submit the rental agreement proof to my prev company.

  131. colin fernandez says:

    hello my basic pay is rs 12590 my da is 8275 my hra pm is 150 how to calculate my hra excemption from income tax i live in rural area

  132. Dear sir,
    i am working as contract basis, in contract job, there is no cuttings in my salary expect professional tax. i am staying rental house in Hyderabad. every month i am paying 3000 but my owner doesn’t have receipts and also doesn’t has PAN no also what can i submit for tax exemption proofs

  133. Subramani says:

    My parents are in OWN house. I am staying with them. The house is not in my name, its belongs to my father. Shall i eligible for HRA claim.

  134. A K Gupta says:

    Sir

    Pl. advise, if HRA benifit applicable in my case

    I own a house in delhi. My Wife & children stay in that house .
    I work in another city in haryana, 40 kms from my house. i have taken a house on rent near my work place with rent of 8000 per month & have rent reciept for same. on weekends i stay in my own house with my family

    Sir can i claim benefit of HRA

    regards
    A k Gupta

  135. How 89(1) relief is claimed if one got Rs.2,00,000/- arrears during this fy, but pertains to 2006-07,2007-08,2008-09 with year wise details(mock)

  136. manojchowdahry says:

    Hi Raagvamd,

    Presently I am staying with my parents and paying rent Rs 5,000 PM in noida and working in noida and purchased one house in noida and rented out getting rent Rs. 8,000/- by home loan and paying EMI 40,000/- (Principal + Interest) per month.
    Now I would like to buy my ancestor property from Uncle in bihar. Can I take another loan. If yes.I will pay EMI 34,000/- and rent it out for 20,000/-Will I get tax execmpton for both EMI for both Principal and Interest(Income from House property negative)

  137. Chandra says:

    Hi,

    It is my second post for the same query..hope i could get response from your end this time.

    In the last financial (2009-2010) I changed my employer.
    I left my previous organizaion on Jun 29th 2009 and joined the current one on July 27th 2009.

    I coudn’t submit rent proofs to my current company in time due to some reason and now they are asking me to submit it while filing IT return. They have already deducted IT of Rs 18500 from my salary because of that. Please note that my last organizaion didn’t deduct any IT from my salary.

    Please clarify the following points regarding this:

    1. As relocated to Banglore from Delhi because of job change,do I need to submit rent receipt for both the places.
    2. Can I submit rent receipt alone or do i need to submit rent agreement as well.
    3. Can I use the company provided rent receipt format and use it to file IT return.
    4. What is the possiblity that I’ll get back claimed HRA amount.

    Also let me know if there is any other doc that I nedd to submit in order to ensure my HRA claim will be considered favourably.

    HRA as declared in My salary Slip last Organizaion:9495
    HRA as declared in My salary Slip current organization:7500

    Awaiting to hear from you !!

    Thanks,
    Chandra

  138. Lifeline says:

    Hi Asif,
    sorry to inform you but looks like this forum is a BPO !!!!
    If you get the answer some body has to calculate my IT also :o

  139. Hi,

    In the last financial (2009-2010) I changed my employer.
    I left my previous organizaion on Jun 29th 2009 and joined the current one on July 27th 2009.

    I coudn’t submit rent proofs to my current company in time due to some reason and now they are asking me to submit it while filing IT return. They have already deducted IT of Rs 18500 from my salary because of that. Please note that my last organizaion didn’t deduct any IT from my salary.

    Please clarify the following points regarding this:

    1. As relocated to Banglore from Delhi because of job change,do I need to submit rent receipt for both the places.
    2. Can I submit rent receipt alone or do i need to submit rent agreement as well.
    3. Can I use the company provided rent receipt format and use it to file IT return.
    4. What is the possiblity that I’ll get back claimed HRA amount.

    Also let me know if there is any other doc that I nedd to submit in order to ensure my HRA claim will be considered favourably.

    HRA as declared in My salary Slip last Organizaion:9495
    HRA as declared in My salary Slip current organization:7500

    Thanks in Advance !!

    -Chandra

  140. Hi,

    I stay in a rented house for last 1 year, this year my company has made it mandatory to submit the PAN number of my landlord. But my landlord doesnt tell me his PAN number. what should I do in this case?

    Is it mandatory for him to give the PAN number.

    thanks

    Dev

  141. Rajesh Varma says:

    Hi,

    I am paying for the rental house sum of Rs. 10000 per month in a metro city. So, the submission of rent receipts only required or I have to give both rent receipt and Lease agreement.?

    So please advice.

    Thanks.

  142. Dear Sir,

    Iam working with a private sector bank, We use to take tax rebate through rent receipts submission, but from last year bank as issued instructions to submit registered lease rental agreement. Please let me know can i execute lease rental accomodation with my father at the same home where we both are residing.

    PLease let me know any tax implications , i will be greatful to you.

  143. Davinder Gauttam says:

    Hi,
    I am working in I-process Pvt. Ltd. I-process is services provider for ICICI Bank. My basic salary is rs. 8190/- per month as well as my HRA is rs. 750/- per month. Requesting to you please give me the suggestion is it as per the policy.

  144. sanober says:

    Respected Sir,
    I want to Fil HRA DEtails in Form no 16 of an Employeee. i am not getting where to put it. can u help me in this regard.

    thanking you.

  145. g

  146. Anonymous says:

    I am living with my father (Senior Citizen) in a 10 marla house with my wife and kids. The house is 50%:50% owned by myself and my father in documents however in reality i am using 90%. My HRA is approx. Rs.17000 per month and i am paying full tax on this amount (claiming no HRA exemption thru rent paid currently). Kindly confirm if I could pay rent to my father and take benefit of HRA in tax calculation. Rent will be added in his income for his tax calculation.
    Alternatively, is it possible that I get HRA head removed from my salary and distribute the amount in basic and EPF. Thus my taxable income will be lower and i could take tax benefit.

  147. I am living with my father (Senior Citizen) in a 10 marla house with my wife and kids. The house is 50%:50% owned by myself and my father in documents however in reality i am using 90%. My HRA is approx. Rs.17000 per month and i am paying full tax on this amount (claiming no HRA exemption thru rent paid currently). Kindly confirm if I could pay rent to my father and take benefit of HRA in tax calculation. Rent will be added in his income for his tax calculation.
    Alternatively, is it possible that I get HRA head removed from my salary and distribute the amount in basic and EPF. Thus my taxable income will be lower and i could take tax benefit.

  148. BHARAT JOSHI says:

    I am living in Delhi and the house in my wife’s name. Can I claim exemption under IT for the rent amount paid by me to my wife. Kindly suggest.

  149. I tsya in metro nad 6000pm as rent. My house owner stays abroad and his uncle, who takes care of the house on the owner’s behalf denies hra receipts and we dont have a rental agreement as well. How do i claim hra in this scenario?

  150. Anonymous says:

    Hi,

    I am an Army officer and staying in rented house as the authorities have a shortage of accommodation. I am claiming HRA and sending Rent Receipts to the DDO but IT is being deducted on the whole of HRA. Since I am entitled to accommodation on payment of a token licence fee, I feel that if I submit rent receipts the HRA should be treated as reimbursement of rent paid and therefore should not be taxed. What are my actual entitlements – do I have to pay tax on houserent reimbursement (HRR) or is HRR tax free?

  151. Dear Sir!

    My landlords are old couple. They do not provide rent receipts. Can I claim HRA ofr the rent paid by me inspite of not having rent receipts? Is rent agreemen enough? I have the bank receipts (challans) as proof of rent payment. Can i use that?

  152. Anonymous says:

    Hi Thank You for your reply on my query regarding HRA! I can’t stop appreciating you for your incredible work. I chanced upon your blog on a google search regarding tax…. Your blog enlightens people like me, who do not understand financial jargons much … I realize the importance of being financially literate and felt could have saved a lot had i discovered your blog a few years ago… Kudos to you!!

  153. Milind PARKAR says:

    Hello Sir,

    I have purchased a new house for which I am paying EMI’s on housing loan. The same property is been rented to someone. I am living with my parents to which I pay a monthly rent of Rs.8000/-. Will I get Income Tax rebate on HRA as well on Housing Loan (Principal + Interest) ?

    Regards,
    Milind PARKAR

  154. Anonymous says:

    Dear Balraj,

    Here’s the problem: The rules applicable to many PSUs are different from general rules. And the rules applicable to the army are usually different from what applies to others!

    So, I am sorry but I would not be able to give any definitive answer to your query. It would be best for your to contact your personnel department.

    But apart from this article, you can also have a look at “Perquisite (perk) value of a company provided house” to get an idea about company provided accommodation.

  155. Anonymous says:

    Hi Poorna,

    I am sorry, but you need these documentary evidences to claim HRA exemption. If the owner / uncle do not agree, your only option looks like switching to another house!

  156. Anonymous says:

    Hi Swathik,

    Unfortunately, you do need rent receipts. I am sure you should be able to convince your landlords – if they don’t have salary income (as they are old), the rental income might not add to their income tax burden anyway…

  157. Me and my mom have joint home loan and joint owners of the home.We both stay together.
    I have paid my home loan that i have taken for the house. I still Now can i pay rent to my mom and claim HRA. My mom has no income , i can file income tax return for her for this rental income.
    is this allowed ???

  158. Hi,

    Please tell me the maximum limit to pay HRA in a pvt Ltd company in india.

  159. I did not submit any rent receipts to my company.. The HRA deduction could have saved me ~18k of tax.. I am planning to claim this tax while I file ITR.. Query: whom to submit my rent receipts now?? (i do have the receipts but I changed my company recently)
    Thanks a lot!

  160. Sir,

    I am salaried employee. I stay in house jointly owned by my parents.
    My mother is in lower tax bracket. Can I pay the entire rent to my mother and claim HRA or Do i need to pay to both in proportion as per ownership ratio and claim HRA ?

  161. Hi Raag,

    I had a query similar to Gagan who posted is one post above mine.

    Due to logistical reasons, I couldn’t submit any rent receipts to my employer in FY 2010-2011. So, I haven’t gotten the benefit of HRA exemption in form 16 generated by the employer. They aren’t willing to regenerate form 16 now.

    How do I claim HRA exemption on ITR-1? Do I simply reduce the “Income from salary/pension (Ensure to fill Sch TDS )” by the amount of HRA exemption in ITR-1?

    Thanks so much for your response and the highly informative free site?

    -Vikas

  162. Hi,

    I stay with one of my friend and share the rent with him. But the agreement is in his name as he moved first. so can i create an affidavit and that as rental proof to claim HRA exemption(as the owner is not ready to recreate the agreement with my name). Also how should i provide rental receipts if i submit an affidavit.

  163. I am a govt officer in 30% tax net. My son is getting a HRA of Rs.7500/-. Is it wise to give him a rent recieipt? If I do so I have to show that income in my returns and pay tax of 30%. Alternatively, If the HRA is added to my son’s income he must pay only 10% tax.

  164. I am a govt officer in 30% tax net. My son is getting a HRA of Rs.7500/-. Is it wise to give him a rent receipt? If I do so I have to show that income in my returns and pay tax of 30%. Alternatively, If the HRA is added to my son’s income he must pay only 10% tax.

  165. what is the difference between fixed monthly allowances and supplementary allowances. They being the components of the Flexible benefit plan, what are the components that are exempted for income tax? What is the company leased vehicle scheme?
    If one travels with his own vehicle, what is the extent of tax exemption?

  166. Don’t gives full information

  167. harsh arora says:

    Hi,

    As per my current employer, HRA and Housing Loan cannot be claimed together, An employee can claim both if his/ her place of Employment is beyond the Travel limits which is more than 100 kms or so.
    I would appreciate if you can answer the below queries:
    1) Please provide the Income tax circular which states that both HRA and Housing loan can be claimed together even if the Employee is living in same city.
    2) Is it mentioned in the Income Tax Act, That Employee’s Place of work should be atleast 80-100 kms away from owned house for which he is claiming home loan exemption, lesser than that he is not eligible to claim both Home Loan and HRA exemption.
    I would be grateful if you can provide some Income Tax Act or circular describing the same in details so that I can save on excessive income Tax.

  168. Hi Ragvandar Sir,
    I am getting rs.5000/-p.m. as HRA. But, my rent is Rs.4000/-p.m. & i live in Navimumbai.
    As per your given calculation…
    1) exemption will be Rs.5000/-
    2)exemption will be. Rs. Rs.4000-2200=Rs.1800/-(As my salary is Rs.22000/-p.m. & 10% is Rs.2200/-)
    3)exemption will be Rs.4000/- (as 40% for city)
    So, i will get 2nd option for exemption ie.Rs.2200/-
    Also document is not required in Rs.3000/- for house rent. So, can i say my house rent is Rs. 3000/- as Rs.800/- is more than 2nd option. Or can i make some correction in rent agreement..Plz sir revert to make my doubt clear.
    Regards,
    Sunil

  169. Mahasridhar says:

    As per my salary I am eligible for company leased free accommodation.Till Oct’11 this was the arrangement.From Nov’11 I have shifted to my own residence jointly owned with my wife.Can I continue the leasing arrangement by having lease agreement between my company and my wife ? What is the tax benefit if I do this way or just add HRA to my ctc directly ?
    thnks
    sridhar

  170. Could anyone let me know whether HRA is a part of basic salary or is it some thing different amount which we get apart from the basic salary ?

  171. Hi I am working in Banglore and Paying rent in both locations, Banglore and Hyderabad (where my parents ) are staying…can I claim the rent in both locations, what is the procedure, what documents do I need to provide, what is the maximum I can show in a rent receipt without any rental agreement.

  172. Dear Sir,
    I am staying in company provided accommodation for which i am paying tax.
    My question is that as my family (wife and children) is staying in another city on rented house can i avail HRA tax benifit.
    Thanks in Advance
    Regds
    Hitesh

  173. Hi,

    My landlord is not ready to give his PAN. What should I do? Can I appeal somewhere either to excuse for not providing his PAN or force him to give it?

    Ahishs

  174. I live in Pune and putting up with a relative who is not (out of courtesy) willing to take rent from me, in spite of this I want to save on HRA. My other uncle is in mumbai and have agreed to give me Rental Agreement for his house. While filing for tax, Can i give rental agreement for mumbai house (as pune and mumbai are in the same state).

    Kindly advise

  175. V UDHAYASANKAR says:

    MY COY IS GIVING 50% OF BASIC PAY AS HRA
    IT IS NOW PROPOSED TO RECOVER 15% OF CTC TOWARDS ACCOMMODATION PROVIDED BY COY
    WHAT IS THE IMPACT TO THE EMPLOYEE AND HOW DO I CALCULATE TAX ON HRA AND IS THERE ANY PERQUISITE VALUE?

  176. I am staying in a hostel & I pay 10% of salary as accommodation charges. Can I claim for the HRA exemption?

  177. How is the calculation made, when the employee has rent receipts only for 6 months of the year. Is the exemption calculated only for 6 months?

    • yes , you have to provide 12 months reciepts to avail HRA benefit other wise you will get benefit only for 6 months and the rest will taxable

  178. Is PAN of landlord mandatory for rent of Rs.15000/-per month OR Rs.15001/- & above per month , please clarify.

  179. Anonymous says:

    Hi,

    I jointly own the house (where I live) with my father. Can my wife claim HRA benefit by paying rent to my father? Thanks.

    • You cannot claim rent paid to spouse. The relationship between a husband and wife is not commercial in nature; a husband and wife are supposed to stay together. So payment of rent to a spouse will not be accepted by the income tax authorities.

  180. Hi,

    I have purchased a flat at Chennai, availing a loan from a bank for th entire amount in the month of March ’2011.

    My parents stay in my flat and i have rented a flat nearby , due to space constraints.The flat is in my name. Please advise whether i am eligible for tax rebate of (Principle and interest ) and whether i am eligible to claim the HRA from my firm

    Kindly advise

    Regards
    Niranjan

    • Dear niraj
      you took a home loan and have bought a home but are not residing in it for genuine reasons.

      It could be that the home is at a considerable distance from your work place. Or, it could be that the home is rather small and your parents are living in it so you have to stay elsewhere.

      Though your rental accommodation and home are in the same city, you can still get all the benefits.

      ~ Tax benefit on principal repayment under Section 80C
      ~ Tax benefit on interest payment under Section 24
      ~ HRA benefit

      However, it is necessary you have some of your belongings at your home (the one you own) and you stay there on and off on during weekends and holidays.

      Despite this, if your employer does not agree and denies your tax benefits, you will have to claim it at the time of filing your tax returns.

      thanks
      manish pant

  181. Hi,

    There is one query related to HRA deduction. I am residing in a quarter provided by the company for which they are charging 50% of my HRA and actually paying me the remaining 50%.

    Should I consider this case as a simple Rented House or is there any other special provision to get the deduction under HRA, as actually I am paying rent to my employer.

    Kindly advice.

    Thanks & Regards
    Vikas Srivastav

  182. I am staying at a hostel where I give accommodation charges. Now can I claim for the HRA to get relief on income tax?

    • Dear Priyanka
      You can claim HRA as you are living in rented accomodation,however you have to provide rent reciepts ( excluding meal charges )to your employer.

  183. Hi,
    Last year I had claimed the home loan interest. Now I sold it now this year I wanted to claim HRA. So is there any tax implication on this.Or any more document to be submitted?

  184. Is it mandatory to provide rent agreement along with Rent receipts? Can rent receipts alone use to claim HRA. Can employer reject HRA claim saying rent agreement not submitted along with rent receipts?

  185. Suvendu Mishra says:

    I am staying at a rented house for which I am claiming HRA. I have also own a house which is Located at the same city bangalore which is completed all aspct and ready to live but the house is remain vacant for the year for which I am paying Interest for the Loan I have taken. So In this scenarion addition to Claiming the HRA can I claim Loss on house Property on Interest paid as Income from house property is nil Since the house is remain vacant for the year?

  186. If I want to put my house rent for tax rebate, I have to produce rent receipt for the whole 12 months?

  187. kannathasan says:

    give the information about IT rules for leased accommodation

  188. Anil maheshwari says:

    Sir Please clear that is their any rule present that we can claim 20% rebate for maintenance of own house for HRA received.

  189. i have not recd HRA but i pay house rent can i deduct for tax benifet

  190. Hello Sir
    We are two sisters working in the same company. We stay with our parents in the same house.
    Can we both enjoy HRA exemption.
    Your reply will be appreciated.
    Thanks & Regards

    Uzma

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