Quick Answer: Can Claim HRA If Own House?

Can I claim HRA for other city?

You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.

For Mumbai, Kolkata, Delhi or Chennai, the tax exemption on HRA is 50 percent of the basicsalary, while for other cities it is 40 percent of the basic salary..

Paying rent –You can pay rent to your parents by transferring money to their bank account or pay via a cheque. … Rental income is taxable for parents – Rent paid by you to your parents shall be taxable for them. They will include this income under the head ‘income from house property’ in their tax return.

How is HRA calculated?

How is Exemption on HRA calculated ?Actual HRA received from employer.For those living in metro cities: 50% of (Basic salary + Dearness allowance) For those living in non-metro cities: 40% of (Basic salary + Dearness allowance)Actual rent paid minus 10% of (Basic salary + Dearness allowance)

Can husband pay house rent to wife?

Yes, you can pay rent to wife or parents to claim Indian HRA (House Rent Allowance) tax exemption. Paid rent is counted as spouse or parent income. … You can pretty well pay the rent to your spouse and claim the HRA tax exemption for your income.

Can we claim HRA for two houses?

Can HRA exemption be claimed for two houses? Yes, you can claim HRA exemptions on two houses, subject to the fulfilment of certain conditions.

Can I claim HRA if I am staying with my parents?

1) You can pay rent to your parents and claim HRA deduction if your parents own that property. But they will have to show the rent as income from house property. But if you are staying with your parents in a rented accommodation and they are paying the rent, you can’t claim the HRA deduction.

Who can claim HRA?

Salaried individuals, who live in rented houses, can claim the House Rent Allowance (HRA) to lower their taxes – partially or wholly. The allowance is for expenses related to rented accommodation. If you don’t live in rented accommodation, this allowance is fully taxable.

Can I claim HRA for same city?

Yes, you can claim the HRA deduction and the tax benefit on a home loan even when you are living in the same city in which your home is.

What is HRA salary?

The amount employees receive from the employer as a part of the paid salary is called HRA (House Rent Allowance). HRA offers tax benefits to the employees for the amount paid by them for accommodations every year. … You can avail this exemption only if you live in a rented accommodation.

How much HRA can I claim without receipts?

Pinky Khanna, Director, People Advisory Services, EY India says, “It is mandatory to furnish rent receipts to the employer for claiming HRA exemption for the monthly rent paid more than Rs. 3000 per month. ”

How do I claim HRA on rental property?

If the rent paid during given financial year is greater than Rs 1 Lakh, the employee will have to provide the PAN card details and copy of the landlord/property owner in order to claim HRA tax exemption. The same receipt can be used for a period of 3 months. Hence, for a year, you need at-least last 4 receipts.

Can I claim HRA and self occupied property?

No, you cannot claim HRA exemption if you are living in a different house in the same city and have a Self Occupied House in the same city.