If you happen to be a salaried employee claiming House Rent Allowance (HRA) from your employer, you are eligible for an Income Tax exemption under Section 10(13A) of the Income Tax Act. How do you calculate this exemption amount? Simple.
Find the minimum of the following three options:
- Actual house rent allowance received from your employer
- Actual house rent paid by you minus 10% of your basic salary
- 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum figure is the allowed income tax exemption on house rent allowance. It’s prudent to work this out so that you can structure the other components of your variable pay better.
Have you ever looked close at the statement of tax generated each month (along with your salary slip) by your employer? Do you understand where your money is going? If no, it’s high time you did.
Further reading:
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Sir,
I want know mywife is owner to Private Flate in South Ganesh Nagar, delhi, so I can rebate to tax because she is house wife and I will paid to per month rent for the Flate. I dont’ know what is the proceser of the Income Tax rebet.
Hello
In F Y 2009-2010 I was staying in rental home for first 3 month, Rs.5000.00 P.M., then after I purchased own flat in same city. for Purchase of flat I paid around Rs.80000.00 for Treasury charges
My Q.1 How can i Calculate My H R A Amount ? can i claim only for that 3 months at time of calculation or i have to calculate whole 12 moths agreeget H RA ? How to calculate H RA in my case ?
Q2 Can I claim Treasury charges U/S 80 C
Hi All,
Can any one tell the clause under which the Maintenance Charges for an apartment are exempted for income tax?
Dear Friends
My wife has got the Flat from his father, and i want to claim deduction of House rent received from my employer.
Is it possible to claim the house rent paid to wife deduction ?
Please reply
With regards
Shailendra Jani
for the calculation of HRA what is the meaning of salary here
Please comment your sugession after every questain so that we can properly go through.
NICE ANSWERS GIVEN ….KEEP IT UP
This is very nice post by you and i am going to tell one thing truly that i am new to TAX so i have no idea of HRA kindly share some more blogs on this topipc soon.Thanks for sharing this blog psot………………………………………………………………………….!
you presented the detailed information but if u give the information about tax calculation it will be excelent
In case of house rent exemption whether PAN no. of house onwer is recuired on rent receipt
I am a retired employee and moved to Chennai after retirement. I am now paying rent Rs 15,000/- p.m. I have no salary income and I have only bank interest for which I have to pay income tax. Can I deduct my House rent paid from the interest accrued and then calculate income tax or not since I have no HRA (retired). In case I take a job on lump sum amount, then from that amount can I deduct the house rent paid by me to arrive at the net income on which I can calculate the income tax. Pl. help me.
Hi,
I have taken two houses on rent. One at my native place, where my dependent parents stay and one at my place of work.
Can i get deduction from taxable income (hra) for both the houses.
Could any one guide me…pls
Please clarify builder rent for redevelopment of bldg. give to tenent is this comes under income from house property and that amt. is taxable?
For calculating HRA what is the meaning of salary.
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