ITR-1 online has pre-filled these details from Form 24Q, previous year ITRs. Once you have filled in all your income details in ITR-1, you are required to fill in the details related to tax-saving deductions available under sections 80C to 80U of the Income Tax Act, 1961. These deductions can be claimed from income before levying of income tax. HRA is one of the biggest tax saving options because it is not wholly taxable. A part of HRA gets exempted under Section 10 (13A) of the Income-tax Act, subjected to certain conditions. As it becomes part of the salary, the least of the three amounts is tax-exempt –. · Actual HRA provided by the employer. · Actual rent paid less 10% of your This requirement applies irrespective of whether you get a house rent allowance (HRA) from your employer or not, but want to claim tax deduction on rent under section 80GG.. Tax deduction on rent 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 But the good news is you can claim HRA exemption even while filing your tax return. You need to calculate the amount of HRA exemption which is minimum of. Actual HRA Received or. 40% (50% for metros) of (Basic + Dearness Allowance) or. Rent paid (-) 10% of (Basic + Dearness Allowance) The rent that is paid to the parents is taxable for them under the head ‘income from house property.’ They can claim property taxes paid by them and also claim a 30% standard deduction from this rental income. If the parents are in a lower tax bracket than the salaried individual claiming the HRA exemption, the family can save tax as a whole. 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. Deduction for a joint home loan. If the loan is taken jointly, each loan holder can claim a deduction for home loan interest up to Rs 2 lakh each and principal repayment under Section 80C up to Rs 1.5 lakh each in their tax returns. To claim this deduction, they should also be co-owners of the property taken on loan. How to claim HRA exemption? Live in rented accommodation. Receive HRA as part of your CTC. Submit valid rent receipts and proof of rent payments. KtHf.

how to claim hra in itr