How Can Salaried Employees Claim HRA Deduction?

Are you looking to claim your HRA deductions? If you are a salaried employee and you are not receiving your HRA, you can still claim for the HRA deductions that you have paid in your ITR. Usually, HRA is a component of your salary. HRA stands for House Rent Allowance. As per the IT Act, the house rent allowance under section 10(13A), can be deducted up to a certain limit.

In the cases where the employer doesn’t provide you HRA, you can still claim your deductions. Any house rent paid by you in the financial year is deductible undersection 80GG.If you are looking to claim your HRA deductions, here are some house rent allowance Rules and regulations you should know.

Criteria for claiming your HRA deductions under 80GG

If you are looking to claim your deductions under 80GG, there are some conditions that you must satisfy. As per HRA Rules, if you want to claim HRA deductions, you must be a self-employed/salaried individual. You must not receive your HRA, during the financial year for which claim has already been made.

The HRA component in your salary must not form a part of your salary. Further, any expenditure incurred by you on rent of any accommodation should exceed 10% of your total income after all the deductions.

As per the IT Act, you must occupy the accommodation for your own residence purpose. You must not own any residency, neither any member of your family, including your spouse and minor child. Thus, you should make certain that you do not own a property. If you own a property, then you cannot claim for HRA deductions under 80GG.

Amount of deductions under 80GG

As per the House rent deductions in Income tax sections, the maximum deductions that you can avail are deductions of INR 5000 per month. You can get 25% of the adjusted gross total income.

In conclusion, these were the essential things that you should know about HRA deductions. People who are looking to avail HRA deductions for the financial year can contact Chakdebiz. For more information, you can visit the link below.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.


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