Tax deduction made

Dear Sir,

Hope you are doing well !!

The actual amount of HRA exemption will be the lowest of these three-

• Actual rent paid minus 10% of the basic salary
• Actual HRA offered by the employer
• 50% or 40% (non metro) of the basic salary, according to the city in which the person resides

The amount paid as Repayment of Principal Amount of Home Loan by an Individual/HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000.

It is advisable to share the complete income and investment structure with us for appropriate reply.

Where you have purchased the property 

Hello,

To calculate the HRA exemption amount you need to provide the salary details. The deduction available is the least of the following amounts:

a. Actual HRA received;

b. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or

c. Actual rent paid less 10% of basic salary + DA.

Other than HRA exemption, you will also be eligible for deduction u/s. 80C for principal repayment and u/s. 24 for interest payment of the loan for the rented property.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

The tax exempt would depend on what is your basic salary + DA so please provide that details so that we can calculate the same.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Please let us know your basic salary per month to calculate the tax exemption amount.

Further, also let us know the reason for not living in the owned house.

Hello Sir,

Please share the salary structure and other details for tax liability & exemption calculation.