House Rent Allowance (HRA) Calculator, is to help calculate HRA exemption, rebate for the salaried individual from the HRA received from your Employer / Salary. Also consider special rebate for Metro residents such as Delhi & explains the method of calculation and deduction under 80GG
HRA is house rent allowance paid by employer to meet tax payer rent expenses and this amount is tax free up-to certain extent. Updated per latest Budget 2023Calculation: HRA is exempt to the extent of the minimum of the following 3 amounts:
HRA is a special allowance provided by an employer to their employees towards payment of rent for residence of the employee. HRA forms part of salary of the employee
HRA exemption is covered u/s 10(13A). HRA granted to employee is exempted to the extent of 'least' of the following.
Salary means Basic Salary + Dearness Allowance.
No, you cannot claim HRA exemption if you are living in your own house.
Yes, you can claim both HRA and Home Loan but you need to prove that the house for which you are paying rent and the house for which you are paying home loan are at different places.
No, you cannot claim maintenance charges as part of rent to claim HRA exemption. HRA can be claimed only on the rent paid.
Maintenance charges may mean Home Owners Association (HOA) Fee, Apartment / Flat maintenance Fees, Common Area Maintenance (CAM) Charges etc. cannot be included in the rent amount for the purpose of HRA calculation.
The Taxpayer needs to have Rental Agreement and Rent receipts as proof of evidence to claim HRA exemption. If the rent exceeds Rs 1 lakh, the tax payer needs to submit the PAN of Landlord to the employer.
However, the PAN of the landlord and the rental receipts are not required at the time of the Income Tax Filing, unless the tax department requested to upload for scrutiny.
No. you cannot claim HRA u/s 10(13A) if you are not receiving HRA from your Employer. But you can claim Deduction u/s 80GG for Rent paid.
The taxpayer can claim least of the following as deduction.
You may refer more about Section 80GG @ Deduction in respect of Rent Paid (80GG)
When we are paying a rent to an NRI, the tenant needs to deduct the taxes @ 31.2% (30% + 4% of 30% as Education Cess) and pay as a challan to the government, and file the TDS Returns (Form 27Q) with Owner's PAN number. Contact Team EZTax.in for help in preparing and filing your TDS
Irrespective of whether TDS deducted or not, the total rent in the rent receipt or rental agreement should not change.
In the same lines, the total rent declared for the calculation of HRA would not change as well.
The TDS need to be deducted at the rate of 5% on the total rental value for that year and pay as a challan to the government, and file the TDS Returns (Form 26QC) with Owner's PAN number. Contact Team EZTax.in for help in preparing and filing your TDS
When deducting TDS and paying the challan, the total rental value would not change for the rental agreement or HRA calculation or employer declaration etc.
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