50% of basic salary for metro city: 50% of ₹ 50,000 x 12 = ₹ 3,00,000. In this case, the least value is Rs. 1,56,000, so Ms. Priya can claim an HRA exemption of up to Rs. 1,56,000. The balance of her HRA, which is ₹ 68,000 (₹ 25,000 x 12 -₹ 1,56,000), will be taxable. HRA Calculation. Step 4: Calculate HRA Exemption. The HRA exemption can be calculated as the minimum of the following three amounts: Actual HRA received from the employer. Rent paid more than 10% of the salary. 50% of basic salary for employees residing in metro cities and 40% for employees residing in non-metro cities. Here are the conditions when one can claim HRA and Home Loan together: 1. Claim for Home loan and HRA in different cities. Employees working in a corporation are privileged to get an HRA from their employer. In the case that an employee decides to buy a house in another city, he/she can opt for a home loan and can claim tax deductions for HRA. HRA calculation: Tax exemption in lieu of HRA is available on the least of the following amounts: Actual HRA received by the employee 50% of salary (Basic + DA) for employees living in metro cities. House Rent Allowance (HRA) In summary, the HRA is a vital part of your salary, and claiming it appropriately can lead to tax savings depending on your rental situation and the amount of HRA received from your employer. Salaried individuals frequently encounter three significant errors when claiming HRA, which can lead to trouble later on. Claim HRA Less than 1 Lakh. It is a common misconception that an employee can only claim HRA if it exceeds ₹ 1 lakh per year. However, an individual can claim HRA less than 1 lakh if they meet the conditions for claiming HRA and their rent payment is lower than the amount calculated under the three criteria mentioned earlier. If an individual eANT7k. Important Dates: ITR Filing and HRA Tax Exemption Claims The last date for filing Income Tax Returns for salaried employees wanting to claim HRA tax exemptions is July 31 of that fiscal year. For self-employed individuals, the last date remains July 31, when they do not require an Audit of their income, and September 30, an audit is needed to Claiming HRA: a. You can claim the HRA for both houses as long as it does not exceed the total HRA received from your employer. b. If the total HRA received from your employer is lower than the total HRA calculated for both houses, you can claim only up to the received amount. "Clarification on Claiming HRA for Two Houses in India" House Rent Allowance (HRA) in India: A comprehensive 4500-word guide covering eligibility, documents required, tax calculations & tips to claim max exemptions legally when filing ITR. This well-researched viral article aims to solve all queries & confusion around HRA. Claiming HRA exemption: Documentation is key. A ubiquitous component of most salary slips, house rent allowance (HRA) is a benefit that even financially not-so-savvy individuals are well aware of Rent receipts are used for tax benefits or legal matters when you are considered eligible. To claim the House Rent Allowance (HRA) from the employer, the rent receipts are often kept as evidence. The employer provides allowances and deductions after verification of the documents. The HRA allowance is based on the rent receipts and is calculated

how to claim hra in itr