How to Claim HRA While Filing ITR – FY 2024–25 Guide

Table of Contents

1. What Is HRA and Who Can Claim It?
2. Conditions for Claiming HRA Exemption
3. How to Calculate Your HRA Exemption
4. Claiming HRA While Filing ITR
5. Claiming HRA Without Rent Receipts or Landlord PAN
6. Common Errors to Avoid
7. FAQs

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1. What Is HRA and Who Can Claim It?

House Rent Allowance (HRA) is a component of salary provided to employees living in rented accommodation. Under Section 10(13A) of the Income Tax Act, you can claim exemption on HRA received if:

• You are a salaried employee
• You live in rented premises
• Your salary includes HRA component

If you’re self-employed or a freelancer, HRA doesn’t apply. You can instead claim rent deduction under Section 80GG.

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2. Conditions for Claiming HRA Exemption

To claim HRA in your ITR, the following conditions must be met:

• You actually pay rent for your accommodation
• The house is not owned by you or your spouse
• You have documentary proof (receipts, agreement, etc.)
• You must not be claiming home loan interest deduction on the same house

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3. How to Calculate Your HRA Exemption

The least of the following three is exempt:

1. Actual HRA received from employer
2. Rent paid minus 10% of salary
3. 50% of salary (if living in metro) or 40% (non-metro)

Example:

• Basic salary: ₹40,000/month
• HRA received: ₹20,000/month
• Rent paid: ₹15,000/month
• Living in Bangalore (non-metro)

Calculation:

• Actual HRA received = ₹2,40,000
• Rent paid – 10% of salary = ₹1,80,000 – ₹48,000 = ₹1,32,000
• 40% of salary = ₹1,92,000

HRA exemption = ₹1,32,000 (least of the three)

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4. Claiming HRA While Filing ITR

If your employer has already considered HRA exemption:

• The pre-filled ITR will show reduced taxable salary.
• Verify in “Salary Schedule” → “Exemptions under Section 10”

If HRA wasn’t considered in Form 16:

• Use Schedule S (Salary) to show full salary.
• Then use Exempt Income Schedule to claim HRA under Section 10(13A).

Attach computation separately if filing manually.

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5. Claiming HRA Without Rent Receipts or Landlord PAN

Without Rent Receipts:

• For rent up to ₹3,000/month, receipts are not mandatory
• For higher amounts, prepare simple receipts signed by landlord with:
  • Name
  • Address
  • Rent paid
  • PAN of landlord (if rent > ₹1 lakh/year)

If PAN of Landlord Is Missing:

• Try to obtain it first.
• If landlord refuses, submit a declaration along with your rent agreement and payment proof (bank statement, UPI screenshots).
• There’s no automatic rejection, but it may trigger a compliance query.

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6. Common Errors to Avoid

• Claiming HRA while staying in self-owned house
• Using fake receipts without actual rent payment
• Failing to adjust if you moved cities mid-year
• Claiming HRA along with full home loan deductions on same house

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7. FAQs

Q1. Can I claim HRA if I forgot to declare it to my employer?
Yes. You can claim it directly in your ITR, even if it’s not in Form 16.

Q2. Can I claim HRA for rent paid to parents?
Yes, but your parents must show it as rental income in their ITR.

Q3. What if I work remotely in my hometown without paying rent?
You can’t claim HRA unless you’re actually paying rent and have proof.

Q4. What if I rent in a different city but own a house elsewhere?
You can claim HRA exemption and also claim home loan benefits for your owned property.

Q5. Can I claim both HRA and Section 80GG?
No. HRA is for salaried individuals. Section 80GG is for those not receiving HRA.