Tax planning
HRA exemption working and claim, 50% cities list (Rule 279, old Rule 2A)
What this means, checked by a CA
Part of your HRA is tax free if you pay rent and stay in the old regime. We work out the exempt amount using the lowest of three limits, check your rent papers and landlord details for Form 124, and make sure the same figure flows to Form 130 and your return.
₹999
Yearly, and when rent, city or salary changes, + 18% GST
- Delivered in 1 working day after documents
- Due: With Form 124 at the start of the year and at the employer's proof deadline; otherwise in the ITR
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 7 items
Salary breakup: basic, DA, HRA
Inputs to all three limits
City of the rented house
Decides 50% or 40%
Rent agreement and monthly rent
Rent minus 10% of salary
Rent receipts or bank transfer proof
Evidence for employer and notices
Landlord name, address, PAN
PAN needed if rent above ₹1,00,000
Relationship with landlord
Disclosed in Form 124
Months actually occupied
Exemption only for that period
DiscussionWhat we discuss · 5 items
Old or new regime this year?
HRA exempt only in the old regime
Is the landlord a parent, spouse or relative?
Must be disclosed; spouse rent is risky
Does the landlord have a PAN?
Needed above ₹1,00,000 rent; else declaration
Do you own a house in the same city?
HRA is for rent of the home you live in
Did you move city or change rent mid-year?
Compute period by period
FormsForms we file · 5 items
Split the year into periods by city, rent and salary
Where: Our working sheet. Due: Before Form 124
Compute exempt HRA for each period
Least of (a) HRA received, (b) rent minus 10% of basic plus DA, (c) 50% of basic plus DA in the 8 cities or 40% elsewhere; taxable HRA is the balance
Where: Our working sheet. Due: Same day
Compare tax with HRA in the old regime against the new regime
Where: Our working sheet. Due: Same day
Fill the HRA part of Form 124 with landlord details and relationship, attach rent evidence
Where: Employer HR or payroll portal. Due: Start of the year and the employer's proof deadline
Check exempt HRA shown in Form 130 Part B; if the employer did not allow it, claim it in the ITR salary schedule
Where: https://www.incometax.gov.in. Due: With the ITR
DeliverablesWhat you get · 3 items
HRA working sheet
When: 1 working day
Checked Form 124 HRA section
When: Same day
Document checklist for a future notice
When: With the sheet
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