How to Calculate the Income Tax Exemption on House Rent Allowance (HRA)?

by Vinaya HS on January 5, 2007

in Finance

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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:

  1. Actual house rent allowance received from your employer
  2. Actual house rent paid by you minus 10% of your basic salary
  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

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.




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{ 310 comments… read them below or add one }

ajay kumar March 3, 2011 at 11:05 PM

i have received 24152.00 as hra for 8 months.four months below 3000 and four month above 3000. i was leaving in rented house.for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me.

rohinijamwal March 4, 2011 at 6:31 PM

i am working in a govt. college. i am residing about 40kms away from the working place in a rented house. can i avail the HRA exemption

Anonymous March 8, 2011 at 2:21 PM

I pay Rs24000/ annual rent please let me know amount exempted from i tax.

mohan kumar March 8, 2011 at 2:41 PM

i have received 48000 as hra for 12months. i was leaving in rented house(48000 per month).for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me.

bhatnagar rupendra March 19, 2011 at 8:52 PM

my basic salary is Rs.22300/0 per month & I am geting 22000 as HRA for 12months. i was living in rented house(4000 per month).for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me.

Sunil K March 23, 2011 at 12:13 PM

Attached rent receipt is necessary but out of 12 months u have to show atleast for 4 or 5 months receipts.

Ahsanul haq wani April 22, 2011 at 10:14 PM

I am living in a rented house paying rent of Rs. 3000 per month. Against this I am receiving Rs. 50,000 per annum from my employer. Am I entitled to exemption of Rs. 36000 , I pay.

Anonymous May 11, 2011 at 10:31 PM

Hey,

Nice blog!! If I am staying in my own/parent’s house…then is there any point in the whole HRA thing?? I will still be getting my HRA allowance but after tax deductions if I am not wrong. Please don’t mind me I am bad in accounts :)

sanjeev puri June 6, 2011 at 2:45 PM

In case I am employed by a company in U.K and deputed in India. The gross salary decided is GBP 50000/-. What should be the component of house rent incorporated in the salary sheet for maximum exemption ?

chethana June 12, 2011 at 9:48 PM

hi i am chethana ihave dout in hra deduction in salary slip they deducted 2500 as hra in form16 they show hra allowance rent receipt 10759 but we give full receipt of hra how i calculate hra in statement .i am paying actual rent 4000.pls tell me how to do.

Jayman Raval June 25, 2011 at 8:45 PM

Hi, I am gov. servent. know the calculation for Exemption on HRA according to 3 formula but let me know , whether i have to attached rent slip with revenue stamp and in which collum i have to ask for return during IRT-1 filling.

CHANKI June 25, 2011 at 11:28 PM

dear sir,
i’m in IPCC student
i have difficlti in CAPITAL GAIN topic
so pls soved my difficulti

ram lal goyal July 6, 2011 at 12:41 PM

If i am residing in my own house and not paying any rent to any body. how much exemption is eligible.

gurdip singh July 27, 2011 at 2:35 PM

i am retired person paying rs 5000 per month as house rent.pl let me know how much amount i am entitle to claim the exemption as i am drawing pension rs 33050 per month.

ram lal goyal July 28, 2011 at 2:18 PM

dear sir
My house is on self lease that is my company has hired my house on lease and provided it to me. How to calculate income and perquisites. In lieu of this I am getting any HRA and 10% of basic is deducted for lease accommodation.

ram lal goyal July 28, 2011 at 2:19 PM

My house is on self lease that is my company has hired my house on lease and provided it to me. How to calculate income and perquisites. In lieu of this I am not getting any HRA and 10% of basic is deducted for lease accommodation.

Nandish Rao August 13, 2011 at 11:30 AM

Dear Sir/Madam,

I am a salaried employee of a private limited company. I have a home owned by me in my home town and I have taken home loan to buy that home. I use the interest and principal part of my home loan in my tax exemption.

My parents live in my home in home town and I go and visit my home town every week. I stay in Bangalore and have rented a house in Bangalore.

Can I claim HRA rebate for the rent I am paying in Bangalore?

I need your guidance on this matter.

Thanks & Regards,

Nandish

suneet singh September 13, 2011 at 7:06 PM

If i am giving the hra per of 8000rs and company is paying only 5000rs hra to me. So i want to know out of these two amount which will consisder in my tax

ronit singh December 8, 2011 at 1:11 PM

sir,
im student.in b.com.nd it is very usefull……4 me 4 sutdy so im statisfy with u…thanx 4 support…

Satendra December 31, 2011 at 10:16 AM

Pl. tel me:

Paying house rent Rs. 8000.00 /pm
basic salary is 43000.00 pm
how much tax benifit i will get it on house rent

Lakhan Paul January 11, 2012 at 4:09 PM

Sir
I am a salarised person and having the house allotted by the Department and paying Licence Fees @ Rs 900/P.M. please. Can this Licence fee be taken in deductions.

manoj kr mourya January 17, 2012 at 8:29 AM

I am paying Rs3500 p.m as a house rent, whereas i am receiving HRA Rs 2860/p.m.In which amount is exemption to income tax rebete for HRA/ Pl suggest me

PANKAJ DIWAN January 19, 2012 at 8:46 AM

i am living on rent in delhi NCR working in gurgoan and my family is living in chandigarh also on rent.I used to go on weekend to chandigarh.I am paying both side rent so can i claim total HRA from BOTH SIDE ???Please advice.

Mahesh January 20, 2012 at 11:44 AM

Will the House Rent allowance amount will be deducted from my actual salary while computing the Income Tax Amount. For eg: My salary is 3 lakhs and HRA is 50000, will my salary for the computation of salary will be 250000?

pratap kanti roy January 20, 2012 at 3:23 PM

my basic is17980, hra 2697, i pay rs.4000/month.
what is the tax exemption for this.

BASANT January 23, 2012 at 12:22 PM

i hv house loan rather then how can i may take exemption frm HRA, PLZ explain via example.

Abhijit Kumar Jha January 24, 2012 at 12:31 PM

I am getting HRA Rs.90,000/per annum from my employer,and my basis salray Rs.1,08,000/Per annum,I am paying Rs.60,000/per annum.How much I will get rebate in Income Tax?

Sumit February 1, 2012 at 2:26 PM

For a rented flat, building maintenance is seperately charged & billed.
Owner gives rent receipt for rent & society provides receipt for maintenance
Does it come under HRA tax rebate?
If yes, than what is required.

Peri Srinivas Rao February 3, 2012 at 12:37 PM

I am getting hra Rs16011.& paying Rs35000hra to the owner.What is amount deductbale under hra

Nikku February 3, 2012 at 8:44 PM

I am living in a Rented house.I got Rs 25,000 as a House rent in a year from Empoyer.
Iam paying Rs 5,000 as a rent. Explain me.. what amount I get for house rent deduction?

Nikku February 3, 2012 at 8:51 PM

my basic salary is Rs.22300/0 per month & I am geting 22000 as HRA for 12months. i was living in rented house(4000 per month).for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me

amar February 4, 2012 at 2:36 PM

Ilive in my parents house.Iam agovernment employee.howcould I claim incometax exemptions in HRA

M.K.JHA February 5, 2012 at 5:03 PM

SIR,I WANT TO KNOW TO CALCULATE TAX EASY WAY.PLEASE PROVIDE SOME TOOL
THANKS WITH REGARDS
MKJHA

Venkat February 8, 2012 at 2:31 PM

I am in a rented apartments in Bangalore. In Bangalore the rent is equal to rent + society maintenance charges. In my rent agreement it is mentioned as 12000/- inclusive of maintenance, however he has mentioned verbally that the rent would be Rs 10000/- and maintenance would be Rs.2000/-.

I also understand that at some places, tenant has to pay the maintenance to the society directly on behalf of the owner (receipt will be in the name of landlord). Landlord is of the opinion that only rent is part of his/her additional income for which he/she is taxable and not maintenance.

Pl. let me know whether I can claim HRA exception on both rent and maintenance as both are paid for staying in the rented house

S.K Ambasta February 9, 2012 at 10:50 PM

my basic salary is Rs.22300/0 per month & I am geting 22000 as HRA for 12months. i was living in rented house(4000 per month).for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me

C Shekhar February 10, 2012 at 9:27 PM

my basic salary is Rs.29000 per month & I am geting 21000 as HRA annualy.
I live in my parents house. Iam a government employee. how I calculate or claim tha HRA in return form, or how ca I take income tax exemptions in HRA?

bhaskar February 13, 2012 at 8:19 PM

How much amount is exempted as House Rent without Houseowners receipts for rent

saroj gangwar February 14, 2012 at 7:26 PM

my basic salary is Rs.13910 & I am getting 8040 as HRA for 12 month. I am living in rented house 2000 per month for taking exemption of HRA Is necssery to attach HRA receipt paid or I can get exemption with enclosing rent receipt .please kindly explain.

arvind February 19, 2012 at 8:36 PM

i have received 48000 as hra for 12months. i was leaving in rented house(48000 per month).for taking exemption of hra is it necessary to attach hra receipt paid or i can get exemption without enclosing rent receipt.kindly explain me.

B V RAMARAO February 21, 2012 at 7:46 PM

my basic salary is Rs.22430 per month & I am geting 31424 as HRA annualy.
I live in my parents house. Iam a government employee. how I calculate or claim tha HRA in return form, or how ca I take income tax exemptions in HRA?

B V RAMARAO February 21, 2012 at 7:48 PM

my basic salary is Rs.22000 per month & I am geting 31000 as HRA annualy.
I live in my parents house. Iam a government employee. how I calculate or claim tha HRA in return form, or how ca I take income tax exemptions in HRA?

Manoj February 22, 2012 at 7:22 PM

i need formula to calculate HRA TA DA and all allowances

P. VASANTH KUMAR February 23, 2012 at 9:03 PM

Sir, I am receiving HRA Allowence of Rs. 29465 per 12 months. May I be allowed to exempt the said amount directly? My pay is Rs. 205580 per annum and My DA is Rs 67164 per annum. I am living in a rented house for which I am paying Rs. 2800 per month. Now kindly let me know how and how much I can get exemption under HRA 10 (13A). Do I have to produce house rent receipt?

Govind P. Vishwakarma February 24, 2012 at 11:29 AM

I m receiving Rs 14500 per month HRA ,How much intitle for tax rebate

C.K.Singh February 26, 2012 at 9:14 PM

Basic salary Rs 873922.house rent allowance RS 38909Yearly. Actual House Rent PaidYearly 60000.I can get H.Rent Exemption Under HRA10(13A)

ramana March 3, 2012 at 10:07 AM

I am working in Gov’t office ,living in rented house ,from which amount exceed should be submitted rent certificate with income tax return for the financial year 2011-2012.Is ther any HRA exemption ,please give me clarification with rule possion.

DR SURENDRANATH MISRA March 5, 2012 at 5:39 PM

what is basic salary? amongst following figures
a) basic pay
b) pay+grade pay
c) pay+grade pay+D.A’

Iam an odisha state govt employee. My pay structure includes pay+grade pay+D.A
For HRA exemption which fig. is to be taken into account.

sasanka panigrahi March 10, 2012 at 6:14 PM

For geting House rent exemption( for a govt. Employee) is it mandetory to produce reciept form the house owner with his(house owner’s ) photo identity card and PAN card ?

Vajid Ali April 8, 2012 at 1:06 PM

Sir/Mam
I have recieved HRA from Employer Rs 10000 per month.
So tel me examption I-Tax.

chander bist July 5, 2012 at 12:12 PM

Me and my spouse r joint property owner of a Society Flat. We r getting a monthly rent of Rs.18,000/-. The rent check is deposited in the joint account opened by us. Both of us r salaried employees.
Could we inform our respective offices that we share the rent amount, i.e. Rs.8,500 per month and after deducting 15% of the total (out of 30% amount of rent allowed for maintainence of flat), the same be added in our income for intcome tax purposes. In other words, could we share the income from rent equally?

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