House Rent Allowance Form
- Rajesh Kumar Kar
- Apr 9
- 6 min read
House Rent Allowance (HRA) is one of the most important components of an individual's compensation package. Employers offer a substantial perk in which they pay a percentage of an employee's housing rental costs. This article seeks to clarify the importance and scope of the HRA-permissible deduction. Further, it explains the concept of the house rent allowance form and how it helps with HRA exemption claims.
Table of Contents
What is the House Rent Allowance?
House Rent Allowance is a stipend that the company gives workers to help with living expenses in rental housing. An employee's CTC includes HRA. The majority of employers in both the public and commercial sectors give their workers HRA as one of the sub-components of their salaries. You are eligible to receive tax benefits on the annual amount of rent you pay for housing as a taxpayer. Section 10(13A) of the Income Tax Act applies to this. You can claim HRA exemption for the period when you lived in a rented accommodation under the following conditions:
You should be a salaried employee. The tax benefits related to HRA exemption are available only to salaried individuals. A self-employed person cannot seek the benefit of this exemption.
You should receive HRA as a part of your salary package/CTC. The CTC or salary package includes basic salary, allowances, perquisites, etc. You must ensure that HRA is a part of your CTC to avail of this exemption.
You should Choose the Old Regime. The employee must have chosen the old regime as the benefit of HRA is not available under the new tax regime.
You should stay in a rental home. You can only claim this exemption if you are paying rent and staying in a rental property. Since one cannot pay rent to oneself, living in a self-owned home does not qualify you for any tax benefits.
If you pay rent and meet certain requirements, you may be entitled to alternative deductions under provisions such as Section 80GG if you are a self-employed person or an employee not eligible for HRA.
House Rent Allowance Form
A declaration form detailing the amount of HRA received and the specifics of their rental charges are sometimes required by employers. Employers can use this declaration to determine your eligible HRA exemption limit when deducting taxes from an employee’s salary. Here is the format of the HRA form.
APPLICATION FORM FOR H.R.A
ANNEXURE
Certificate to be furnished by a Central Government Servant claiming House Rent as Per Government of India, Ministry of Finance O.M. No.11013/2/86-E.ll (3) dt. 23.8.86. and Even No. dated 19. 3. 87.
I certify that I have not been provided with any Government owned or hired accommodation during the period with effect from_____________________________ in respect of which the allowance is claimed
I certify that I am residing in the house hired / owned by me / my wife / husband / son / daughter / father / mother a Hindu undivided family in which I am percener.
I certify that I am incurring some expenditure on rent contributing towards rent as property Tax or maintenance of the house.
I certify that I am not sharing Government hired or owned accommodation allocated of my parent (child) by the State / Central Government and autonomous public undertaking of semi – Government organization such as municipality, post trust etc.. allotted rent free to another Government Servant.
I certify that my husband / wife/ children / parents who is / are sharing Government owned or hired accommodation with me alloted to another employees of the Central /State Government autonomous undertaking or semi – Government Organisations like municipality, post trust etc.
I also certify that my wife / husband has not been allotted accommodation at the same station by the Central / State Government autonomous public undertakings or semi – Government Organisation such as municipality, post trust etc.
Date_____________________ Signature______________________
Designation________________________
TO BE FILLED AND SIGNED BY THE HEAD OF OFFICE / DEPARTMENT
Certified that Pi / Pu / Dr.________________________________________
Is not provided with any Government owned or hired accommodation.
Note:-
1) All the paras must be attended. Signature of Head of Office / Department
2) Wards or sentence which are
Not required should be strike out.
(SEN)
Documents Needed to Claim HRA Exemption
The supporting documentation for the HRA tax exemption claim includes the following:
House Rent Allowance form: Employers frequently ask workers to fill out a declaration form outlining their rental expenses and the amount of HRA they have received. Employers can use this declaration to determine your eligible HRA exemption limit when deducting taxes from your pay.
Rent Receipts: These important records attest to the fact that you have paid your rent. They ought to contain information such the tenant's name, the landlord's name, address, length of renting, and the amount paid. Every rental payment made throughout the fiscal year should be accompanied by a rent receipt that has been properly signed or stamped by the landlord.
Rent Agreement or Lease Deed: You can further prove your tenancy by presenting a copy of your lease or rental agreement. The terms and conditions of your rental agreement are described in this document, along with the duration, rent amount, and other important information. It supports your HRA claim and acts as official documentation of your tenancy.
Landlord's Permanent Account Number (PAN): In certain nations, like India, presenting your landlord's PAN is required in order to claim HRA tax exemption (if the annual rent exceeds Rs. 1 lakh). Make sure to ask your landlord for this information and to include it in your paperwork.
Utility Bills: Although not necessarily required, presenting utility bills—such as those for gas, water, or electricity—can support your claim by proving that you live in the rental property.
Conclusion
The HRA declaration form is one of the key documents to be submitted by employees to validate their claim for HRA exemption. As a salaried taxpayer, you need to fill out this form correctly and completely to get the exemption you are entitled to under the regulations listed by the Income Tax Act.
FAQs
1. What is the HRA rule for income tax?
The House Rent Allowance is a tax-benefitting component of salaries. The exemption is determined by subtracting 10% of pay from actual rent paid, 50% of salary (basic + dearness allowance) for metro areas, or 40% for non-metros, whichever is lower. However, in order to receive this benefit, proof of employment and rent must be provided.
2. When can I claim tax exemption on house rent allowance?
You are only eligible for an HRA tax exemption if the HRA portion of your pay is used to cover your rent for a residential accommodation.
3. How can I claim an HRA exemption?
By providing your employer with proof of rent receipts, you can assert your HRA exemption. As an alternative, you can assert the HRA exemption on your own income tax return.
4. How to claim HRA in the Income Tax Return (ITR)?
"Salary as per Section 17(1)" should include the taxable portion of the HRA component. Under the heading "allowances to the extent exempt u/s 10," an exempt element of the HRA component must be added; make sure it is included in salary income under u/s. 17 (1), 17 (2), and 17 (3).
5. How to claim HRA if not mentioned in Form 16?
Your employer has not supplied a separate HRA component if HRA is not shown on Form 16. When the employer contributes a distinct component to HRA, HRA u/s 10(13A) may be claimed. If it isn't there, you can use Section 80GG to claim rent.
6. What is an HRA certificate?
A certificate provided by a government employee to claim housing allowance for not being able to access a government accommodation in accordance with the established process is known as an HRA certificate.
7. What is the HRA form used for?
It is submitted to employers for tax exemption on house rent paid under Section 10(13A) of the Income Tax Act.
8. Is rent paid to family members eligible for HRA exemption?
Yes, if you have a valid rental agreement and actual rent transactions, but IT authorities may scrutinize payments to immediate family.
9. What happens if I don’t submit the HRA form to my employer?
HRA exemption won’t be reflected in Form 16, and you’ll need to claim it while filing your ITR with supporting documents.
10. Can I claim HRA if I stay in my own house?
No, HRA is only applicable if you pay rent. However, you may claim home loan benefits under Sections 24(b) and 80C.
11. Is it mandatory to submit rent receipts with the HRA form?
Yes, for rents exceeding ₹1 lakh per annum, along with the landlord’s PAN details as per IT department rules.
12. Can HRA be claimed if rent is paid in cash?
Yes, but you must maintain receipts and preferably pay via bank transfers to avoid tax scrutiny.
13. What if my employer does not provide HRA in salary?
You can claim a deduction under Section 80GG if you meet the eligibility criteria, subject to conditions.
14. How does HRA calculation vary for metro and non-metro cities?
Metro residents can claim up to 50% of basic salary as HRA, while non-metro residents are limited to 40%.
15. Can I claim both HRA and a home loan interest deduction?
Yes, if you live in a rented house but have a home loan for another property, you can claim both benefits.
16. What should I do if my employer rejects my HRA claim?
Check if you’ve provided complete documentation, and if still denied, claim the exemption directly while filing your ITR.
Related Posts
See AllOpening a bank account is an essential step in managing your finances. In India, it requires submitting specific documents to comply with...
Monitoring how much you spend is a perfect way to keep an eye on your bank balance. There are varied ways to check the balance remaining...
Comentários