🏠 Claiming HRA in ITR? Know the New Rules to claim HRA from AY 2025-26

🔍 What is HRA?

HRA or House Rent Allowance is a component of a salary given by employers to employees to meet rent expenses. It is partially or fully exempt from income tax under Section 10(13A) read with Rule 2A of the Income Tax Rules.

⚖️ Who Can Claim HRA Exemption?

✅ Only salaried individuals who receive HRA as part of their salary
✅ Must be living in a rented house and paying rent
❌ Not available to self-employed or those opting for the new tax regime

📋 Conditions for HRA Claim

To claim HRA exemption:

1. Salary must include HRA component
2. Rent must be paid to a landlord
3. If rent exceeds ₹1,00,000/year, PAN of landlord is mandatory
4. If claiming in ITR, salary slips and rent receipts are essential

🆕 What’s New in AY 2025-26 (FY 2024-25) ITR Filing?

Starting AY 2025-26, the Income Tax Return forms require detailed disclosure if you’re claiming HRA exemption under the old tax regime:

🔧 New “Schedule for House Rent Allowance (HRA)” Added

This schedule requires:

• Salary (Basic + DA)
• HRA received
• Rent paid
• City of residence (metro or non-metro)

📌 Document Required:

• Salary slip showing HRA break-up
• Rent Paid Details

📊 How to Calculate HRA Exemption

HRA exemption is least of the following:

1. Actual HRA received
2. Rent paid – 10% of (Basic Salary + DA)
3. 50% of salary (for metro cities: Delhi, Mumbai, Kolkata, Chennai) OR 40% (for non-metros)

🧮 Example: HRA Calculation

Case: Ram Mohan (lives in Delhi)

Step-by-step Calculation:

1. Actual HRA received annually = ₹16,000 × 12 = ₹1,92,000
2. Rent paid – 10% of Salary (Basic + DA):
   → ₹20,000 × 12 = ₹2,40,000 – 10% of ₹6,24,000 = ₹2,40,000 – ₹62,400 = ₹1,77,600
3. 50% of salary (Basic + DA) = 50% of ₹6,24,000 = ₹3,12,000

Result:

HRA Exemption = Least of the above = ₹1,77,600

📑 Documents Required for ITR Filing (Old Regime)

1. Salary slip with HRA break-up
2. Rent receipts / rent agreement
3. PAN of landlord (if annual rent > ₹1 lakh)
4. Bank proof (optional) if asked

🧾 HRA Schedule in ITR Form (New Requirement AY 2025-26)

While filing ITR’s under old regime, you must now fill a separate HRA schedule, failing which exemption may not be allowed even if rent was paid.

You can contact team of Tax Experts to file Your ITR at 9150010300 or visit www.legalsahayak.com

📺 Watch: ITR Filing with HRA – Live Demo

🎥 Video: CA Guruji Channel – HRA ITR Filing Demo
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