If you are a salaried individual, you must have heard about HRA. House Rent Allowance (HRA) is an amount that employers pay to their employees as a part of their salaries. It helps employees get tax benefits towards the accommodation payment every year. But do you know
how to calculate house rent allowance
? Well, I didn’t know about it until recently.
The tax deduction amount that can be claimed over HRA is the least of these three:
Actual rent paid – 10 percent of basic salary; or
50 percent of basic salary if you stay in metro cities such as Mumbai or Delhi (40 percent for non-metros); or
Actual HRA received
How to Calculate House Rent Allowance using an ExampleLet’s say you have a monthly basic salary of Rs. 50000 and receive a house rent allowance of Rs. 25000. You are paying Rs. 12000 rent monthly for accommodation in Delhi.
Now, to avail HRA benefit, the least these three is exempted:
Actual rent paid – 10 percent of basic salary = [(12,000 x 12) – (5,000 x 12)]= Rs. 84000
50 percent of salary = [50% x (50,000 x 12)] = Rs. 300000
Actual HRA received = (25000 x 12) = Rs. 300000
Here, Rs. 84000 is the Exempted HRA since it’s the least among the above-obtained figures.
Use Government’s HRA Calculator to Calculate the HRA Easily
Find out how you can claim HRA for your own home Read how you can claim HRA for own house Find out how much HRA can be claimed without proof Read if you can pay rent to my parents and claim HRAI hope you like my answer on
how to calculate house rent allowance
.
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Authors Of The Question
How to calculate house rent allowance?
Neeraj
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3 Year
2021-10-28T17:53:26+00:00 2021-10-28T18:49:07+00:00Comment
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