House Rent Allowance Salaried employees who receive house rent allowance as a part of salary and incurred payment towards rent can claim HRA exemption to reduce their taxable salary wholly or partially. The deduction of HRA can be claimed under section 10-13A of the Income Tax Act in the following mRead more
House Rent Allowance
Salaried employees who receive house rent allowance as a part of salary and incurred payment towards rent can claim HRA exemption to reduce their taxable salary wholly or partially.
The deduction of HRA can be claimed under section 10-13A of the Income Tax Act in the following manner.
The least of the below is allowed as HRA exemption:
Actual HRA received by the employee
40 % of salary for non-metro city or 50 % of salary if the rented property is in Metro cities like Mumbai,Delhi, Kolkata and Chennai)
Actual rent paid minus 10% of salary.
Important Points:
Here Salary would include basic salary, dearness allowance and fixed percentage of commission.
HRA in excess of the above exemption will be taxable under the heads of salary income.
Documents like rent receipts and rental agreements will be required to be submitted to the employer for claiming the deduction for the house rent allowance.
If the payment of rent is more than Rs 1 lakh per annum, then the PAN of the house owner will be required to be submitted. On the basis of these proofs, employers would provide a deduction for HRA in form 16.
In case, HRA exemption has not been provided by the employer, the Employee, himself can claim exemption of such HRA at the time of filing of Income Tax Return, subject to the employer has mentioned the HRA amount separately in form 16A.
Rent paid to parents can also be considered to take an exemption of HRA. It is not fundamentally different with HRA paid to somebody else. There is no is also Let’s understand this with an example. You can pay rent to your parents and can claim the exemption of HRA as per section 10(13A). But beforeRead more
Rent paid to parents can also be considered to take an exemption of HRA. It is not fundamentally different with HRA paid to somebody else.
There is no is also Let’s understand this with an example.
You can pay rent to your parents and can claim the exemption of HRA as per section 10(13A).
But before that you must ensure to follow the following procedure:
Sign a rental agreement with your parents for the rental property.
Transfer money to your parents every month.
Ensure that your parents report the rent paid by you as income in their income tax returns.
Exemption of HRA u/s 10 (13A) can be claimed only if it is mentioned in form 16. If it does not mention in form 16A that means your employer has not provided a separate component of HRA. HRA can be claimed when a separate component towards HRA is given by the employer in your salary. However, In absRead more
Exemption of HRA u/s 10 (13A) can be claimed only if it is mentioned in form 16. If it does not mention in form 16A that means your employer has not provided a separate component of HRA.
HRA can be claimed when a separate component towards HRA is given by the employer in your salary. However, In absence of it, you can claim for rent paid under section 80GG.
a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more
a) Uncommuted pension:-
Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.
I am receiving HRA (House Rent Allowance) from my employer, How can I get Income Tax exemption of HRA?
House Rent Allowance Salaried employees who receive house rent allowance as a part of salary and incurred payment towards rent can claim HRA exemption to reduce their taxable salary wholly or partially. The deduction of HRA can be claimed under section 10-13A of the Income Tax Act in the following mRead more
House Rent Allowance
Salaried employees who receive house rent allowance as a part of salary and incurred payment towards rent can claim HRA exemption to reduce their taxable salary wholly or partially.
The deduction of HRA can be claimed under section 10-13A of the Income Tax Act in the following manner.
The least of the below is allowed as HRA exemption:
Important Points:
See lessI am living with my parents and receiving HRA from my employer, How can I get the exemption of HRA in Income Tax Act?
Rent paid to parents can also be considered to take an exemption of HRA. It is not fundamentally different with HRA paid to somebody else. There is no is also Let’s understand this with an example. You can pay rent to your parents and can claim the exemption of HRA as per section 10(13A). But beforeRead more
Rent paid to parents can also be considered to take an exemption of HRA. It is not fundamentally different with HRA paid to somebody else.
There is no is also Let’s understand this with an example.
You can pay rent to your parents and can claim the exemption of HRA as per section 10(13A).
But before that you must ensure to follow the following procedure:
- Sign a rental agreement with your parents for the rental property.
- Transfer money to your parents every month.
- Ensure that your parents report the rent paid by you as income in their income tax returns.
See lessHow can I get exemption of HRA amount if it is not showing in my form 16A?
Exemption of HRA u/s 10 (13A) can be claimed only if it is mentioned in form 16. If it does not mention in form 16A that means your employer has not provided a separate component of HRA. HRA can be claimed when a separate component towards HRA is given by the employer in your salary. However, In absRead more
Exemption of HRA u/s 10 (13A) can be claimed only if it is mentioned in form 16. If it does not mention in form 16A that means your employer has not provided a separate component of HRA.
HRA can be claimed when a separate component towards HRA is given by the employer in your salary. However, In absence of it, you can claim for rent paid under section 80GG.
See lessWhat is the difference between commuted pension and uncommuted pension?
a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more
a) Uncommuted pension:-
Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.
See less