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Rent deduction

174 views 3 replies

Shine

Mechanical

215 Points Posted on 10 July 2018

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

Replies (3)

Ravi SADhiyan

Practice

4510 Points Posted on 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

CA ABHAY GUPTA

Practice

3235 Points Posted on 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..

Ashish Khillan

Gaining knowledge

1039 Points Posted on 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?