House Rent Allowance Calculator
Please fill below details to calculate HRA Exemption/Tax benefit for House Rent paid
Questions and Answers on House Rent Allowance Calculator
HRA is exempt to the least of following limit: -
|Metro Cities||Non Metro Cities|
|House Rent Allowance actually received||House Rent Allowance actually received|
|Rent Paid less 10% of salary||Rent Paid less 10% of salary|
|50% of salary||40% of salary|
In case the landlord does not have a PAN or does not provide you the PAN you have the following options.
- You can get a declaration to this effect from the landlord along with his name and address and same should be filed by the employee to his employer.
- To substantiate the claim, the employee needs to keep a record of the rent agreement/lease deed, rent receipts, intimation to the society for the occupancy etc
- In case you are paying through banking channels, you need not worry as you can substantiate the payment easily through your bank statement.
- In case you are not paying through banking channels, ensure that in future rent payments are made through banking channels as cash transactions may not be considered genuine
You can claim HRA along with home loan only when you are not residing in your own house for which you have taken the loan In following scenarios you can claim both deductions
- When assessee owns a house in another city.
Prasad works with a company in Delhi and staying in a rented apartment. At the same time, Prasad has bought a property in Jaipur for which he has taken home loan. Since Prasad cannot stay in his own house in Jaipur as he is working in Delhi, he is eligible to claim deduction for both HRA and home loan interest and principal.
- If a person takes home loan and buys a house which is under construction, then he will be eligible to claim deduction for HRA.
- When a person owns a house but is unable to move in.
- When a person resides in a rented house and rents his own house.
The deduction available is the minimum of the following amounts–
- HRA received (if you have stayed in rented accommodation for part of the year, consider HRA for only that part).
- 50% of your Basic Salary when you live in a rented place in Mumbai, Calcutta, Delhi or Chennai OR if you are in any other city 40% of your Basic Salary
- Rent paid (proportion of rent paid by you) less 10% of Basic Salary
So, HRA for shared flat is calculated in the same way as normal HRA the only difference is, here you claim HRA on your share of rent paid. Click here to know more about HRA.
Please Note :-
- In order to claim HRA , you need to submit rent receipts to your employer. Also, you are required to have a proper rent agreement , which can be submitted to your employer if asked by him.
- You need to provide PAN of landlord as well, if your annual rent exceeds Rs. 1,00,000.
- You can generate rent receipts from our myITreturn App. Click here to download the myITreturn app.
- PAN Card details of landlord in case rent paid is greater than Rs.1 lac per annum.
- Rent receipt
- Photocopy of rent agreement if required.
Under section 80GG, you can claim least of the following as tax benefit:-
- Rs. 60,000 per year (i.e. Rs. 5,000 per month).
- An amount equal to the total rent paid minus 10% of the total income.
- 25% of total income of employee.
In case if both the spouse claim HRA deduction from same rent receipt then income of landlord will get wrongly considered twice.