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Hra exemption fy 2019-20

Raja M (Manager) (34 Points)

10 May 2019

Under Section 80GG HRA exemption showing :-

a) Rent paid in excess of 10% of total income*

b) 25% of the total income.

c) Rs. 5000 per month.

Can anyone help regarding the same with example ?

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6 Replies

Manish (Student) (190 Points)
Replied 10 May 2019

under 80gg hra exemption allowed only if hra not received during service period and assessee not owned any house propert on his name or wife and dependent children..
provision of the section.
1)5000p.m.
2) 25% of adjusted gti
3)rend paid -10 % of adjusted gti....
example let say assessee paying 10000p.m as rent. and adjusted gti is - 1000000
now qus is that how much he can claim deduction ....
solu-
1) 5000×12=60000
2)25% of agti I.t 10L×25%=250000
3) 120000- 100000=20000
least is claimed deduction I.e 60000

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CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 10 May 2019

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. Here are a few conditions that must be fulfilled – You are self-employed or salaried You have not received HRA at any time during the year for which you are claiming 80GG You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of the office, or employment or carry on business or profession. In case you own any residential property at any place, for which your Income from house Property is calculated under applicable sections (as a self-occupied property), no deduction under section 80GG is allowed. You will be required to file Form 10BA with details of payment of rent. Deduction –the lowest of these will be considered as the deduction under this section- (a) Rs 5,000 per month (b) 25% of the 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 a 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 a deduction under section 80GG).

Raja M (Manager) (34 Points)
Replied 10 May 2019

Sir, if HRA received from employer and iam paying rent then also exemption is 5000pm. FY 2019-20.

Manish (Student) (190 Points)
Replied 10 May 2019

not claim deduction if received hra

CA.Pankaj Rawat (Chartered Accountant) (1381 Points)
Replied 10 May 2019

than you are not eligible for 80GG

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Raja M (Manager) (34 Points)
Replied 10 May 2019

For most employees House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961.