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Rent deduction

Shine (Mechanical ) (215 Points)

10 July 2018

i am receiving a HRA of 8000 and i am paying rent of 12000.
how much can i claim exemption?

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3 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 10 July 2018

Originally posted by : Shane D Rozario
	i am receiving a HRA of 8000 and i am paying rent of 12000.how much can i claim exemption?

The exemption of HRA will be available up to the the minimum of the following three options:

1. Actual House Rent Allowance (HRA) received from your employer

2. Actual house rent paid by you minus 10% of your basic salary

3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 10 July 2018

salary???

formula is lower of following

1) actual HRA receive
2) rent paid less 10% of basic salary + D A
3) 40% or 50% of basic salary + D A

50% in case of residence in delhi kolkata chennai mumbai
40% in rest city..

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Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 17 July 2018

if rent is paid by employee, but not mention in form 16 for deduction by employer.... then can employee claim deduction for rent paid... or he have to file according to form 16 without RENT paid deduction?