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Hra exemption ay 2015-2016

Suren (ASE) (117 Points)

13 August 2015

Hello Friends,

If the employer is not paying HRA and there is no mention of HRA in the form 16. Can a person who is staying on rent and his employer not paying HRA , can still claim HRA exemption while filing ITR?

Thanks

Suren

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 13 August 2015

Since HRA has not been granted by the employer, you cannot claim the same. Instead, you can claim deduction u/s 80GG.

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Vijeth Kumar C (CA Final) (1615 Points)
Replied 13 August 2015

Deduction in respect of rent paid [Section 80GG]

1. The deduction under this section is allowed to an assessee who is an individual.

2. This section provides for deduction in respect of rent paid.

3. To avail the deduction under this section following conditions must be fulfilled :

i. The individual shall pay rent for his residential accommodation, whether

furnished or unfurnished.

ii. The assessee should not be receiving any house rent allowance exempt under

section 10(13A)

iii. The accommodation should be occupied by the assessee for the purposes of his

own residence.

iv. The assessee or his spouse or his minor child or an HUF of which he is a member

should not own any accommodation at the place where he ordinarily resides or

perform duties of his office or employment or carries on his business or

profession; or

v. If the assessee owns any accommodation at any place other than that referred

to above, then such accommodation should not be assessed in the hands of the

assessee as self occupied property.

vi. The assessee should fulfill such other conditions or limitations as may be

prescribed, having regard to the area or place in which such accommodation is

situated and other relevant considerations.

vii. The assessee should file a declaration in Form 10BA, confirming the details of

rent paid and fulfillment of other conditions, with the return of income.

3. Quantum of Deduction – The deduction shall be the minimum of the following

amounts :

i. Excess of rent paid over 10% of „Adjusted Gross Total Income‟;

ii. 25 % of the „Adjusted Gross Total Income‟

iii. ₹ 2,000 per month.

Adjusted gross total income means the gross total income as reduced by the

following:

(1) Amount of deductions under sections 80C to 80U (excluding section 80G),

(2) Any income on which income tax is not payable,

(3) Long term capital gains and

(4) Short term capital gains of the nature referred to in section 111A ( i.e. short-

term capital gain on transfer of shares through a recognised stock exchange

which are taxable @ 15%.

(5) Income referred to in sections 115A, 115AB,115AC, 115AD, 115BB and 115D.

Suren (ASE) (117 Points)
Replied 16 August 2015

What about th case where in employer gives HRA but its not mentioned in Form 16 as exempt income since the employee didnt submit rent reciepts on time.

Can the employee now get HRA exemption while filing the ITR ?

Thanks