DSTF HRA EXEMPTION CALCULATOR

DSTF HRA EXEMPTION CALCULATOR

Developed by : DELHI SCHOOL TEACHERS FORUM

An employee receives a house rent allowance (HRA) from their employers. HRA is an allowance and is subject to income tax. An employee can claim exemption on his HRA allowance under the income Tax Act if he stays in a rented house by producing HRA receipt to his/her employer. 

In order to claim the deduction:-

1. An employee must actually pay rent for the house which he occupies.
2. The rented premises must not be owned by him.
3. An employee has to produce Proper Rent Receipt signed by owner on revenue stamp if rent is more than Rs.3000. If rent is less than 3000/- Rent Receipt is not required. 
4.  If an employee paying rent more than Rs. 15000/- P.M, he has to produce the copy of the Pan Card of his Land Lord.

Can I pay rent to my parents or spouse to avail HRA benefits?

An employee can pay rent to his parents. But his parents will then need to add the same in his income from other souces and will be entitled to pay tax for the same.

However , an employee  cannot pay rent to his spouse.

The exemption of HRA will be available up to the minimum of the following three options

• The actual amount of HRA received.
• 40% of salary (BP+DA) in Non-metro cities and 50% of salary (BP+DA) in Metro city.
• 
  
• Rent Paid minus 10% of salary(BP+DA)
  
  

  HRA EXEMPTION CALCULATOR 

  under Section 10(13A) of the Act 

  
  HOW TO USE CALCULATO

1. Fill Basic Salary including DA in 1st Box
2. Fill HRA allowance you receiving from office 2nd Box
3. Fill Actual Rent you are Paying in the 3rd Box.
4. Then Click on the Metro City if your residing in Mumbai, New Delhi, Kolkata, Chennai or Click on the Non-Metro City for others.

Basic Salary (Basic + DA)
HRA (House Rent Allowance) received
Actual rent being paid
10% OF BASIC SALARY
40% OR 50% OF BASIC SALARY
RENT PAID OVER 10% BASIC SALARY
HRA EXEMPTION