HRA Exemption Calculation for Salaried Employees | House Rent Allowance to Save Income Tax

HRA Exemption Calculation for Salaried Employees | House Rent Allowance to Save Income Tax with Old Tax Regime [Hindi]
In this video by FinCalC TV, we will see HRA Exemption Calculation for salaried employees using excel calculator in hindi. This HRA or House Rent Allowance helps us to save income tax with old tax regime. New tax regime does not allow this HRA deductions to be claimed to save income tax.
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CHAPTERS:
00:00 HRA Exemption Calculation Intro
00:40 How to Calculate HRA Exemption?
01:45 Using HRA Calculator on FinCalC Blog
02:33 Example of HRA Exemption Calculation
06:37 HRA Excel Calculator
10:46 Conclusion
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After watching this video following queries will be solved:
What is HRA or House Rent Allowance?
How to calculate HRA exemption amount?
HRA exemption without PAN
HRA exemption without rent receipts
HRA exemption limit and section to save income tax
How to claim the HRA benefit to save Income Tax?
How to claim HRA by paying rent to parents?
How to claim HRA without staying on rent?
When can you not claim HRA exemption?
Claim HRA by staying in different city?
Claim hra and loan emi installments
WHAT IS HRA
- HRA full form is House Rent Allowance
- If you are salaried employee, you must be receiving HRA component. You can confirm this from your Salary slip of any month
- HRA is provided to you so that it helps you pay your rent if you stay in rented accommodation
- Not all of us stay on rent, so this HRA amount becomes taxable if you do not stay on rent
- But, if you stay on rent, you can claim HRA exemption to reduce your taxable income which will help save your Income Tax
- There are certain rules you need to follow along with HRA calculation formula you must use to calculate HRA exemption, because not entire HRA amount can be exempted from taxable income
House rent allowance (HRA) is a basic component of your salary. However, most of us are not familiar about the rules that can help us save tax on it. If you are a salaried employee living on rent, then here's how you can use HRA to reduce your tax liability.
Calculation of tax-exempt HRA amount
The amount of HRA received by you from your employer is not fully exempt from tax. The tax-exempt portion of the HRA is actually the minimum of the following:
a) Actual HRA received from employer
b) 50 percent of the 'salary' if the accommodation is in the metro cities (Delhi, Mumbai, Chennai, Kolkata) or else 40 percent for other cities
c) Excess rent paid annually over 10 percent of the annual 'salary'
Here 'salary' means basic salary & dearness allowance (DA) only
Special cases to claim HRA benefit
1. Rent paid to your parents
If you are staying with your parents and paying rent to them, you will be eligible to claim the tax-exemption on HRA. Experts suggest that it is advisable to have a documented evidence such as rent receipts, financial transactions, rental agreement to avoid rejection of claim by the tax department. There have been instances where the Income Tax department has rejected claims because there was no genuine proof of transactions having taken place.
2. Own a house but staying in a different city
Even if you own a house but are staying in a different city because of your job, then, too, you can claim HRA benefit if you are living in a rented property.
3. When can you not claim HRA exemption
If you are receiving HRA but are staying in our own apartment, then you cannot claim the HRA exemption benefit. The whole HRA amount received will be taxable in your hands.
#HRACalculator #HouseRentAllowance #HRAExamples #Excel #Calculator #FinCalCTV
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DISCLAIMER:
Examples and demo used are for Illustration purpose only and might not cover every detail of examples shown.

[@indrajitakuli8060]

Thanks for this valuable information sir

[@fincalc]

Welcome

[@GaneshKumar-bu8gg]

​@@fincalcany possible to post the videos in English language

[@pavan5140]

Please do a video on tax harvesting for mutual funds, for years > 20
I know you did a video on these individually, but to calculate these together is a little tricky

[@user-gw8gj6it2p]

Hi,
I am a self employed freelance software professional who is showing rent in business expenses [INCOME BY PROFESSION]. I showed 48k Rs. rent expenses in my last F.Y. income tax return. My total expense will exceed more than 1 lac Rs. In the current F.Y.
I know landlord’s PAN is required for paying more than 1 lac Rs. rent in order to claim HRA from employer if you are a salaried individual. Does the same limit apply to self employed freelance professional?
if I don’t show my rent as business expenses in current F.Y. and pay more than 1 lac rs rent, will this limit and PAN card requirement still apply ?
My rent expenses could cross Rs 3 Lac in the next F.Y. so I don’t want any limit. I also don’t want to ask for PAN card bcoz most of the landlords don’t provide it even if they have it.
Please reply.
Thanks

[@Lat4688]

Govt should not be so strict on taxing the HRA of employees either or private. The employees should be allowed to stay in headquarters without any tax trouble and concentrate on their work.

[@ashokchoudhary8563]

Self ke name se plot liya hua hai to fir HRA claim kar sakte hai kya

[@DINESHSHARMA-ct8ln]

agar sarkari quarter me reh rhe hain to kese claim kre HRA

[@jitanshusrivastava1710]

Hello Sir
if i am paying loan as a co-applicant only for a new home owned by my mother, will i be eligible to claim HRA?

[@Dave_en]

You will be eligible for any one of them, not both. You can forego HRA exemption to get more tax benefit from home loan interest upto 2 lakhs per annum.

[@sartajsingh7301]

Respected sir
Ghar mere naam pr hai .meri wife hra claim kar sakti hai agar hum rented slips show karde to nearby her location?

[@FinanceMonkeys]

She can claim HRA if she’s paying rent to you and she has HRA component in her salary payslip. Also make a rent agreement between you both

[@anshurawat6305]

I was getting HRA till July 23 and was living in rented house. I retired in 31 July 23 and still living in rented house but now not getting any HRA only getting pension. What will be my HRA exemption? please suggest

[@fincalc]

You can use section 80GG and claim up to 60000 as HRA exemption in FY

[@anshurawat6305]

@@fincalc HRA upto Jul 23 deducted Rs 104731. Can I deduct both this amount and balance Rs 8x 5000 - Rs 40000/-

[@anshurawat6305]

Sorry HRA received Rs 104731 for four months inFY 2023-24

[@Dave_en]

​@@anshurawat6305Check the basic and DA for 4 months and calculate on that.
It would be better to contact your CA. They charge very nominal fee but save you from future hassles. Either you may commit mistakes in filing or end up paying more tax than you are actually eligible.

[@sair-sapata4871]

Spka calculator chsl nhi raha

[@fincalc]

chal raha hai, please check