HRA Form

HRA Form

House Rent Allowance (HRA) is a type of compensation offered by an organization according to its policy. HRA is an allowance offered to employees above their basic salary if they move to another city for work and end up paying house rent. It is also eligible for tax exemption on the income earned, which helps an individual in saving tax.

HRA, or the House Rent Allowance, is one of the sub-components of the employee’s salary for which deductions are fully or partially taxable under Section 10(13A) of the Income Tax Act. HRA Form PDF can be downloaded from the link given at the bottom of this page.

HRA Form – Points to be Considered

• The salary of the employee
• The actual rent paid by the employee
• The House Rent Allowance receivable by the employee
• The place where the employee is residing
• The place where the company or employer is situated

HRA Tax Exemption Limit for Salaried Individuals

The Income Tax Act Section 10 (13A) provides for HRA exemption of tax. The deduction will be the lowest among the following:

• The House Rent Allowances that the employer gives.
• 50% of the employee’s salary is eligible for HRA tax exemption if they live in any of the Metro cities of India. The metropolitan cities of India include Delhi, Mumbai, Calcutta, and Chennai
• In case the employee lives in any other city, then 40% of the salary can be HRA exempted.
• The actual rent paid by the employee for the residence each month Minus (-) 10% of their salary.

Salary here may include the basic salary, the dearness allowance, and the commissions.

You can download the HRA Form PDF using the link given below.