What is HRA?
House Rent Allowance or HRA is paid by an employer as part of salary. HRA helps an employee cover rental expenses. If you live on rent you can save tax on HRA. HRA is fully taxable for those who do not pay rent.
Claiming HRA while filing tax returns?
If you received HRA from your employer and paid rent but could not submit rent receipts on time to your employer, don’t worry. HRA Exemption can be claimed while filing your tax return.
Do remember to maintain rent receipts safely in your records.
Answer a few questions and cleartax will find out the maximum HRA exemption you are eligible for.
Did you previously claim any part of your HRA from your employer?
How do I know? If you submitted any rent receipts to your employer/HR, it is very likely that you claimed some part of your HRA already. Please check your Form-16 to be sure.
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Please enter your current HRA exemption value ( Per year or For the duration with the employer )
Where can I find this? This should be in your form-16 in either part-B or in annexure section. Please confirm with your HR if you are not sure.
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What's your Basic Salary per month as per your pay slip?
What's your HRA Allowance per month as per your pay slip?
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How much rent did you pay every month?
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Woohoo! Below is your allowed HRA exemption
| Your HRA exemption calculated |
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How was this computed?
The deduction available for HRA exemption is the minimum of the following amounts:
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- Actual HRA received
- 50% of [Basic salary + DA] for those living in metro cities (40% for non-metros)
- Actual rent paid less 10% of basic salary
What is Section 89(1)?
Tax is calculated on your total income earned during the year. But, if your total salary includes any past dues (i.e. arrears) paid in the current year, or your have received family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A. In simple words you are saved from paying more tax because of delay in payment to you.
Please note that in order to claim this relief you need to submit Form 10E to the Income Tax department first.
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Your relief amount has been noted. ClearTax will consider this relief amount in calculating your tax return. This will be shown in the last step of e-filing summary page
Note: Please don′t forget to save your data
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If you need help calculating the relief amount, then a ClearTax CA expert can help you calculate this and file your returns quickly.
You can also calculate this on your own by reading our guide. Read Guide
Salary
Do you have a Form-16?
Click here to upload your Form-16 PDF and avoid manual entry.
Your tax return will be automatically prepared.
Don't have a soft-copy? Use our step-by-step-guide to understand your Form-16.
Use our step-by-step guide to download and upload your Form-16.
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