Yes, you can claim HRA exemption by lowering your taxable income at the time of filing your return. However, you must calculate exempt HRA using calculator and subtract the same from your taxable income.
As an employee, you must submit Form-12BB investment declaration to your Employer to claim an exemption on HRA. You must also submit rent receipts signed by your landlord as a supporting document.
Enter the following details to calculate your HRA exempt from income tax:
1. Basic Salary
2. Rent Paid
3. HRA (House Rent Allowance) received
4. Select if you are living in a metro city or not
Calculation of exempt HRA may differ based on if the taxpayer is living in a metro city or not. The metropolitan cities for HRA calculation are Delhi, Mumbai, Chennai, Kolkata.
To calculate the exempt HRA, the lower of the following amount will be considered:
1. Actual HRA received
2. 50% of the basic salary
3. Excess rent paid over 10% of the annual salary
To use HRA calculator you need details like basic salary, dearness allowance, HRA received. You can find these salary details in your salary slips or Form 16 for that financial year.