HRA benefit on house rent without rent agreement?

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HRA benefit on house rent without rent agreement?

I am leaving on rent without rent agreement. Can I applicable for HRA benefit? If applicable or not applicable then what is the next process?

Profile photo of Amol Asked By: Amol 1 replies 1 helpful answers Last Updated: 4 months, 2 weeks ago
  • Profile photo of AmolAmol
    Participant

    I am leaving on rent without rent agreement. Can I applicable for HRA benefit? If applicable or not applicable then what is the next process?

  • Profile photo of Madhuri N MarneMadhuri N Marne
    Moderator

    Yes, HRA is applicable to you.
    The Basic Conditions to claim HRA is :
    1. You should be staying in the rented premises.
    2. HRA should be a component of your salary.
    In your case you can use the rent receipts to claim the HRA benefit.
    To calculate HRA least of the following will be exempt:
    1. Actual HRA received from the employer.
    2. 50% of Salary* ( in metro cities)/40% of Salary* (in non Metro cities)
    3. Actual rent less 10% of Salary*.

    *Salary for the purpose means = Basic + DA + Commission(if Fixed % iof turnover)

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