The least of the following will be the exempt House Rent Allowance: Following is his salary structure: Particulars The House Rent Allowance calculation formula has been explained below with the help of an example: Let’s understand with an example: (Here Salary includes – Basic Salary + Dearness Allowance) The amount of Exempt HRA will be the least of the following amounts: You can know exempt house rent allowance from your Form 16.įrom FY 2020-21 onwards, House Rent Allowance Exemption is only available if an employee opts for the Old Tax Regime. The employers, in turn, will calculate exempt House Rent Allowance and deduct the same from the employee’s taxable salary.
10(13A).Įmployees are required to submit the rent receipts to their employers to claim the tax benefit. Salaried individuals who live in rental premises can claim exemption of House Rent Allowance u/s.
House Rent Allowance (HRA) is paid by an employer to employees as a part of their salary to meet the accommodation expenses. Can a taxpayer claim both deduction on Home Loan & HRA?.
