Refund

If you are a salaried employee and staying in a rented accommodation, you can claim the house rent allowance (HRA) exemption under Section 10(13A) of the Income Tax Act, 1961. 

The HRA exemption is available for least of the following amounts:

a) Actual HRA amount received from the employer;

b) the amount of rent you pay for your house in excess of 10% of your basic pay;

c) fifty per cent of the basic salary, if you reside in a metro city, and 40% of the basic pay for non-metro cities.

For claiming the exemption, the employee must stay in a rented house during the period for which the exemption is being claimed and must have actually incurred the expenditure on payment of rent.

The employee will have to submit rent receipt/rent agreement to the employer for availing the HRA exemption.

If the amount of rent claimed is more than Rs. 1,00,000 per year, the Permanent Account Number (PAN) of landlord has to disclosed.

Fo more details refer:: house-rent-allowance-hra-sec-10-13a

Usually HRA forms part of your salary and you can claim deduction for HRA.

If you are eligible for HRA, but not claimed deduction as per form 16, you can claim the same while filling return; but be ready for its justification when query raised by CPC.

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. 

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 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).

Refer form 10BA