No, HRA is exempt from your income and not shown as a deduction under section 80C. HRA is difference from 80C lakhs and it comes under income tax section 10. Don’t consider your monthly rent as part of 80C – 1.5 lakhs. Do not confuse rent with investment. 80C encourages your investment, section 10 for your expenses.
HRA is not part of 80C, it is apart from 150000 rupees
To get HRA tax exemption follow the steps,
- Collect monthly/consolidated rent receipts( in case monthly rent is more than 3,000 rupees)
- You will have to get your landlord’s sign on the rent receipts, PAN card and copy of landlord PAN card(in case monthly rent is more than 8,333 rupees).
- You have to submit these receipts to the Accounts/HR/Payroll team of your company.
- Yes, you can surely claim HRA exemption, if you are paying rent to your parents.
Salaried income taxpayers are eligible for House Rent allowance(HRA) in income tax section 10(13A). Even PG rent receipt is accepted for HRA. You can collect rent receipt from PG owner for tax exemption.If you are paying monthly rent more than 8300 rupees, it is mandatory to submit landlord’s PAN card to employer. Get landlord PAN number to get tax exemption if you annual rent is more than 1,00,000 rupees.
Even PG rent receipt is accepted for HRA.
For the purpose of HRA calculation for tax deduction, the actual amount of HRA exemption will be the lowest of following three,
- Actual rent paid minus 10% of the basic salary
- Actual HRA offered by the employer
- 50% or 40% of the basic salary, according to the city in which the person resides. For bangalore, it is 40%. For other metros 50% of basic salary.
Make sure you collected Rent receipt and submitted for TAX exemption
Explore more on HRA in the previous post.