I had never declared HRA in my Comp1 tenure, thus HRA related part is not update in my Form16. so I have below concerns related to HRA. 1. During my Comp1 tenure, we never received HRA thus at the time of filing e-Return I used to declare it under 80GG. 2. Last year(April 2014-March 2015) I was student for 8 months up to Nov 2014.From Dec 2014 I started getting HRA component. 3. Now while filing eReturn for 2015-16(current year) I am declaring rent paid under 80GG for those 8 months where I was a student and was not receiving HRA 4. Post November, Starting December I started receiving HRA for next 4 months(Dec 2014-march 2015). So where to declare this amount for this 4 months ?? 5. is this amount exempted from my GROSS TOTAL INCOME under extent exempt u/s 10?? If not, then I need your help in this calculation.
In the present case you can claim deduction for rent U/s. 80GG for 8 months i.e. when you was student.
Rest of the months if you have not declared the House rent paid to your employer then the same can be declared at the time of filing IT return i.e. which preparing computation . The same should be taken care U/s.10 as per the exemption allowable for HRA.
If you want to have calculation then you can mail us the details at modani005@gmail.com
Please let me know what details you need. Just to update. When I was student I used to get stipend. But for last 4 months of I started receiving BASIC, HRA and other components. So please let me know what details do you need from me.
I was doing calculation based on below formula. 1. Actual house rent allowance received from your employer - Considering HRA received from employer For 4 months. 2. Actual house rent paid by you minus 10% of your basic salary - House rent paid - 10 % of basic salary for 4 months. 3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro 40% Basic salary received for last 4 months. and I am subtracting minimum of these 3 from the gross total. is this right ??
You need to subtract minimum of the three from the HRA you received from Employer to arrive at income from salary.
If you are not having any other source of income then this will be your gross total income. From this if you deduct your 80GG, any insurance etc U/s.80C you will get taxable income.
Also if you want you can send us the breakup of basic, HRA other allowances along with HRA paid and others.
Also send the stipend you received when you were student.
We will calculate and send you the details. you can reach us at modani005@gmail.com
So just to be more clear... 1. do you please confirm that the calculation that I am doing is correct ?? 2. If the calculation That I am doing here is correct, then I am going to subtract the minimum of 3 from my Gross Income as per form16 and then I will consider the result as my new "Income from Source" while efiling. 3. along with the above, I am adding some amount under 80GG as rent paid for 8 months while I was student. Please confirm if above 3 statements are correct. if not then add you suggestion along with each statement.
1. The calculation you are doing is almost correct.
2. You first need to take salary as per your form 16 subtract the HRA i.e. least of the 3.
Then you add your stipend. Both clubbed together is your Gross Total Income
3. From the amount arrived deduct rent paid for 8 months which will be calculated as per 80GG.
Then you will arrive at your total income.
If you are not clear then tell i will explain along with example or if you can provide figures i can calculate and tell.
Hello Shyam, One concern here. My form16 already have the stipend and salary clubbed considering all the allowances. I was taking the gross income from salary and was subtracting the least of 3. Anyways. Sent you an email.
Hi
I have sent you the calculation sheet taking into consideration the full details.
If any query you can let me know.
As I am trying to answer your query, I noticed that you posed a supplementary query to Mr Shyam. As the question is answered by him clearly,I don't think there is need to repeat my answer.
All the best.
Section 80GG is available only to person who are not in receipt of HRA. In the present case you have received HRA for four months and hence you cannot claim deduction u/s 80GG. Best option is claim exemption u/s 10 for HRA and forget the claim under section 80GG. Because maximum amount allowable u/s
80GG is 24000 and whereas deduction u/s 10 in respect of HRA is to the extent of HRA received. This more benificial.
