HRA in ITR 2 FY 2024-25

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This query is : Resolved

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This discussion clarifies HRA exemption rules for Income Tax Return (ITR) 2 for the financial year 2024-25. Even if you pay more rent than the HRA received from your employer, your tax exemption is capped at the lowest of three figures: the actual HRA received, 40% of your basic salary (for non-metro cities), or the rent paid minus 10% of your basic salary. In this case, the maximum claimable exemption is £53,868.

Sanjay

Sanjay (Querist)
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22 August 2025 Sir,

Please go through my below query :
I have received HRA Rs. 70800/- PA. my Basic Salary Rs. 241320 i am leaving in non metro city with Rental house, I have paid Rs. 78000/- during the financial year 2024-25
shall i eligible for claim the HRA more than i have received in salary i.e Rs. 70800/- but rent paid Rs. 78000/-.

I requested to you kindly guide me for above query

Thanks & Regards
Sanjay

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 August 2025 No, you cannot claim HRA exemption greater than the HRA received from your employer.
Even though your rent paid is more than HRA received, your exemption is restricted to the lowest of the below three values.
Under the old tax regime, the HRA exemption is the least of the following three amounts:

1. Actual HRA received: ₹70,800 per year

2. 40 perc. of Basic Salary (since you are in a non-metro city):
40% of ₹2,41,320 i.e ₹96,528 per year

3 Actual Rent Paid minus 10% of Basic Salary:
Rent paid: ₹78,000
10% of Basic Salary: which is ₹24,132
Excess rent paid = ₹53,868
That means the maximum exemption you can claim is ₹53,868,

Sanjay

Sanjay (Querist)
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23 August 2025 Thanks you sir for your valuable service.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 August 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 September 2025 Good luck..

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