Скачать или смотреть How is HRA Calculated | House Rent Allowance Examples FY 2018-19 | FinCalC TV

How is HRA Calculated | House Rent Allowance Examples FY 2018-19 | FinCalC TV

DOWNLOAD our FREE ANDROID APP "FinCalC":
https://play.google.com/store/apps/de...

DOWNLOAD HRA Exemption excel calculator:
https://fincalc-blog.in/hra-exemption...

This video by FinCalC TV explains How HRA (House Rent Allowance) is calculated that would help us in saving Income Tax.

It's almost the end of FY 2018-19 and people are saving and investing in various Income Tax saving schemes. Popular saving schemes include PPF, ELSS, NPS, etc.

Apart from these popular schemes, we can also save Income Tax if we are staying in rented accommodation. House Rent Allowance is the crucial component that helps us in reducing our Income Tax Liability.

HRA or House Rent Allowance is the allowance provided by employers to employees to meet their House Rent Expenses. You can claim deduction by submitting the house rent receipts that you receive from your Landlord in order to save Income Tax and reduce your Income Tax Liability.

Following are few things that you should know:
1. HRA is applicable only to people who stay in rented accommodation

2. HRA Calculation depends on your Basic Salary

3. PAN card of your landlord is required to be submitted if rent is greater than Rs.1,00,000 in a Financial year

4. You need to have the receipts of house rent paid before Calculating and claiming HRA

So these are some of the things you should know before you calculate your HRA and claim deduction.

The least amount of the following is considered to calculate your HRA for reduction in your Income Tax:
1. HRA received from your Employer
This is the HRA component that you receive from your employer every month. Annual HRA received from your employer will be considered.

2. Actual rent paid minus 10% of Annual Basic Salary
This is the formula used to calculate the second component. Annual Basic salary is considered in this case which you can get from your pay slips. Rent paid is the Annual rent paid.

3. 50%(Metro City) or 40%(Non-Metro City) of Basic Salary
50% of your Basic Salary if you are staying in metro city or 40% of your Basic Salary otherwise.

So the least of above three components will be considered for calculation of your HRA that will be exempted from Income Tax.

Watch video to see the calculation process with the help of EXAMPLES.

The examples used are for Illustration purpose only.
Comment in comments section if you have any queries.

=============================

SUBSCRIBE to our "FinCalC TV" YouTube Channel for more updates:
   / @fincalc  

New Income Tax Calculation for FY 2018-19:
   • How To Calculate Income Tax FY 2018-19 Exa...  

FOLLOW FinCalC Blog:
https://fincalc-blog.in

Facebook :   / rrreclaim1  

Twitter :   / rrreclaim