Worrying
how much HRA can be claimed in ITR. Here is your answer.
The amount of House Rent Allowance (HRA) that can be claimed in your Income Tax Return (ITR) in India depends on various factors.
How Much HRA We Can Claim in ITR?
It includes your salary structure, actual rent paid, and whether you live in a metro city or a non-metro city. Here's a general overview:
You can claim the least of the following amounts: Actual HRA received from your employer. Rent paid minus 10% of salary. 50% of salary if you live in a metro city or 40% of salary if you live in a non-metro city.
Suppose you receive an HRA of Rs. 20,000 per month, your monthly salary is Rs. 50,000, and you pay Rs. 15,000 as monthly rent for accommodation in a metro city. Then, your HRA exemption would be calculated as follows:
Actual HRA received: Rs. 20,000 per month × 12 months = Rs. 2,40,000
Rent paid minus 10% of salary: (Rs. 15,000 - Rs. 5,000) × 12 months = Rs. 1,20,000
50% of salary: Rs. 50,000 × 12 months × 50% = Rs. 3,00,000
In this case, the least of the above amounts, i.e., Rs. 1,20,000, would be answer for your query, “how much HRA can be claimed for tax exemption?”
When filing your Income Tax Return (ITR), you can claim the HRA exemption under the "Income from Salary" section. You would need to provide details of your HRA received, rent paid, and the calculation of the exempt portion.
It's essential to keep documents such as rent receipts, rent agreement, and proof of HRA received handy in case of any scrutiny by the Income Tax Department.
The HRA claimed in your ITR may be subject to verification by the Income Tax Department, so it's crucial to ensure accuracy and compliance with tax regulations.
This is how much HRA can be claimed in ITR.
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Authors Of The Question
How much HRA can be Claimed in ITR?
Shalin
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6 months
2024-03-05T11:50:13+00:00 2024-03-12T13:55:11+00:00Comment
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