How to Save your Taxes via HRA (House Rent Allowance) Sec10 (13A)

In this article we are going to teach you How a salaried class person can Save his/her Taxes via HRA (House Rent Allowance) Sec10 (13A). We divided this article in 2 parts i.e. Criteria and guidelines. HRA is the most easiest way to save your taxes by just submitting few proofs. You can also suggest your clients to save their taxes via HRA.

1. Exemption Criteria (Rule 2A read with Section 10(13A)

  • Actual HRA received by the employee for the year.
  • Actual Rent paid minus 10% of Basic salary
  • 40% of Basic or 50% of Basic (in case of Metro cities)

Least of the above is given as Exemption for Tax

2. Proof(s) to be submitted for HRA

  • Original Monthly Rent Receipts . Sample rent receipt format is provided attached herein.

Rent Receipt should reflect:

HRA Exemption
HRA Exemption
  • Rent paid
  • Period for which Rent Paid
  • Name of the owner
  • Signature of the owner
  • Complete property address

Please find this sample rent receipt format HRA rent slip Format

Rent Receipts should belong to the current financial year

  • Employees, who have joined the company in between the year  should  submit Rent Receipt only for the period with the current employer (from DOJ till the proof submission month)
  • PAN number of Landlord is Mandatory (in case rent is > Rs.8,333/- per month)

Note following Things while submitting HRA Proofs

  • Rent agreement does not constitute proof of  Payment of rent.
  • Rent receipts can be monthly, quarterly, or half-yearly (rent receipt should specify the start and end months

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