Question: How Do I Claim HRA Exemption?

How do I claim HRA exemption while filing?

You are just required to copy the amount from the Part-B of your Form-16 and paste in the relevant section of ITR-1 form.

The required information will be pasted in the ‘Salary as per section 17’ in ITR-1 form.

The tax-exempt portion of HRA will be reported under the head, ‘Allowances exempt u/s 10’ in the ITR 1..

How much HRA exemption can I claim?

50% of the employee salary is eligible for HRA tax exemption if he or she lives in any of the Metro cities of India. The metropolitan cities of India include Delhi, Mumbai, Calcutta and Chennai. In case the employee lives in any other city then 40% of the salary can be HRA exempted.

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

Can I claim HRA if I live in my own house?

Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both, the principal and interest repaid on the home loan.

Is HRA exemption available for AY 2020 21?

Along with House Rent Allowance (HRA) benefits and Standard Deductions, other common and popular deductions removed under the new tax regime are: Exemption u/s 80C – Up to Rs 1.5 lakh. … Tax rebate u/s 87A – Up to Rs 12,500 on taxable income up to Rs 5 lakh.

Do I need to submit any proof for my HRA claim?

To claim HRA, you need to have relevant documents with you. The supporting documents for this purpose would be rent agreement, rent receipts. If the amount of rent exceeds Rs 1 lakh per annum the PAN of the landlord is also necessary.

How is HRA exemption calculated with example?

Example of Exempt HRA calculationActual HRA received is Rs. (25,000 x 12) = Rs. 3,00,000.50% of salary (metro city) is Rs. [(50,000 x 12) x 50%)] = Rs. 3,00,000.Excess of rent paid annually over 10% of annual salary is Rs. (12,000 x 12) – 10% of salary [(Rs. 50,000 x 12)]= Rs. 84,000.

How much is HRA of basic in India?

9,700; or. Actual HRA offered by the employer = Rs. 15,000; or. 50% of the basic salary = 50% of Rs….How is House Rent Allowance (HRA) Calculated?Salary ComponentAmount (Rs.)Basic23,000HRA15,000Conveyance3,000Medical Allowance1,2502 more rows•Apr 19, 2020

Can HRA be claimed by husband and wife?

Yes, there is no restriction on claiming HRA benefit by both the spouses. If you and your wife both are paying the rent then both can claim HRA benefit separately for the respective share.

Who is eligible for HRA exemption?

A salaried taxpayer is eligible to claim a house rent allowance (HRA) exemption under Section 10(13A) of the Income Tax Act, 1961, in respect of an accommodation occupied him, except where the residential accommodation is owned by him or he has not actually incurred the rent expenditure.

How is HRA rebate calculated?

How is Exemption on HRA calculated ?Actual HRA received from employer.For those living in metro cities: 50% of (Basic salary + Dearness allowance) For those living in non-metro cities: 40% of (Basic salary + Dearness allowance)Actual rent paid minus 10% of (Basic salary + Dearness allowance)

Is HRA exemption calculated monthly or yearly?

The HRA exemption for the year is the least of the above, which is Rs 247,500. Organizations using this method calculate HRA exemption each month, and add the monthly HRA exemption values to arrive at the exemption for the year.

Is HRA removed in Budget 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups.

How can I save tax on 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What is the rule of HRA tax deduction?

Tax benefit for House Rent Allowance is available under the Income Tax Act, 1961. HRA exemption will be the rent paid minus 10% of the basic salary or 50% of basic salary for a metro city employee and 40% of basic salary for non-metro city or total amount received as HRA; whichever is lower of the three.