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HRA Exemption

12 February 2018

if employee don't get hra by employer and lives on rent I.e. 4000 pm and salary is 364000pa .how much rebate can he get?

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5 Replies

Heena mangtani (Chartered Accountant) (272 Points)
Replied 12 February 2018

the lowest of these will be considered as the deduction under this section-

(a)    Rs 5,000 per month

(b)   25% of total Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).

(c)    Actual Rent less 10% of Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (167616 Points)
Replied 12 February 2018

Usually HRA forms part of your salary and you can claim deduction for HRA. If you do not receive HRA from your employer, and make payments towards rent for any furnished or unfurnished accommodation occupied by you for your own residence, you can claim deduction under section 80GG towards rent that you pay, provided you do not own any residential accommodation at the place where you currently reside and perform duties of office.

Deduction –the lowest of these will be considered as the deduction under this section-

(a) Rs 5,000 per month

(b) 25% of total Income (before making deduction under section 80GG).

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