This is how you can claim HRA, if not shown to your employer: -
- If taxpayer receives any HRA from employer, but he/she did not claim HRA benefit in Form 16, then he can claim benefit of the same while filing Income Tax return by computing the exemption amount as follows:-
As per the Income Tax Act, the HRA exemption should be calculated in the following ways.
1. Rent paid in excess of 10% of Salary.
- Actual HRA received by the employee.
3. 40% of the salary, if the location of the residence is in a non-metro city/town and 50% of salary, if the location of the residence is in a metro city.
- If taxpayer is not receiving House Rent Allowance(HRA) from employer then he/she can claim deduction for amount of Rent paid for his/her accommodation under section 80GG, if following conditions are fulfilled.
1) If taxayer is self-employed person or client is an employee but he does not get house Rent Allowance from the employer at any time during the Current Financial Year.
2) Taxpayer or his/her spouse or minor child, should not own any residential accommodation at the place where the taxpayer resides, performs the duties of his office, or employment or carries on his/her business or profession-
3) If taxpayer owns residential accommodation at a place other than the place in the above-mentioned point, then the taxpayer should not declare such House Property to be self-occupied.
As per Income Tax Act, Maximum Deduction under section 80GG is as follows:
1. Rs. 2000 per Month,
2. 25% of Total Income,
3. The Excess of actual rent paid over 10% of Total Income.