Can HRA be Claimed for Own House?

I also didn’t know about claiming HRA, but then one of my colleagues informed me about this. Tax exemptions are included in the HRA (House Rent Allowance). The various sections of the Income Tax Act assist salaried persons, as well as self-employed individuals and professionals, in lowering and improving their rent expenses. Employee salaries in both the commercial and public sectors are made up of a variety of smaller elements. One of the main components of the compensation is the HRA allowance.

Example of how much HRA can be claimed:

Zehra pays a monthly rent of Rs 15,000 and receives an HRA of Rs 20,000 in Gurgaon. Her basic remuneration is Rs 60,000. Zehra has taken out a loan to purchase a home in Bangalore, which is where her parents now reside. She pays Rs 25,000 per month in interest on his mortgage loan.

HRA can be claimed by Zehra in the following ways: The amount of HRA tax exemption will be at least one of the following three:

HRA = Rs. 15,000

Because she stays in Gurgaon, 40% of Basic Equals Rs. 24,000

Living expenses - 10% of basic = Rs.15,000 - Rs.6,000 = Rs.9,000

As a result, HRA exemption equals Rs.9,000. The remaining HRA of Rs 15,000 – Rs 9,000 = Rs.6,000 will be included in his taxable income under Salaries on account of HRA.

Can HRA be claimed if I own a house?

Sanket described all the conditions that need to be considered to know when you can claim HRA. The various situations explained will clear your doubt about can I claim HRA even if I own a house, so do give it a read.

Criteria to claim HRA:

1) The HRA exemption under Part 80, or any other section is only available to employees who pay the rent to the owner. There are no exceptions for periods in which the rent is not paid.

2) The HRA tax is calculated on a monthly basis if there is a change in workplace or wage. As a result, the deductions or HRA tax exemptions differ at each period of change.

3) If the rent is paid to anyone other than a father, the employee is entitled to HRA and the tax benefits that come with it. 

4) It is preferable to pay the rent on a monthly basis and exclusively through bank transfers in order to collect the reductions. This will make it easier for the IT department to save costs.

Now you know about all the facts related to HRA allowance.

One part of an employee's pay that enables them to pay for their home and related expenses is the House Rent Allowance. This is helpful if the workers must go to a different area for work. Coming back to your query, can I claim HRA if I own a house? As of my knowledge, living in your own home does not qualify you for an HRA deduction.

Can HRA be Claimed If I Own a House?

House Rent Allowance is primarily meant to provide tax relief to individuals who live in rented accommodation. HRA cannot be claimed if you live in your own house. If you occupy your own house, there is no rent payment involved, so the HRA exemption is not applicable.

If you own a house but live in a rented property in a different city because of work-related reasons, you can still claim HRA. Here:

• You must provide evidence of rent payments such as rent receipts.

• Your owned house should either remain unoccupied or be rented out.

• If you live in your own house, it is treated as a self-occupied property, and you can claim: Interest Deduction on Home Loan up to ₹2,00,000 annually for interest paid on a home loan under Section 24(b).

If you own a house in one city but live in a rented property elsewhere, you can:

• Claim HRA tax exemption for the rent paid.

• Claim deductions on the home loan for your owned property.

This is all about can we claim HRA if we have own house.

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Will I get HRA if I own a house? Few years ago, I was also wondering the same. My CA told me that you cannot claim House Rent Allowance (HRA) for your own house.

HRA is a benefit provided by employers to employees to cover their rental accommodation expenses. To claim HRA, the rented house must be the place of residence for which the employee is paying rent.

If you are staying in your own house, you are not incurring any rental expenses that can be claimed as HRA. The purpose of HRA is to provide relief to employees who live in rented accommodations and pay rent to a landlord.

If you have rented your home and you are living in a rented home, you are eligible for HRA exemption.

If you own a house and are paying a home loan, you are eligible for tax benefits under different sections of the Income Tax Act, such as Section 24 (for interest paid on home loan) and Section 80C (for principal repayment of home loan).

So, will I get HRA if I own a house? The answer is No.

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According to the Income Tax Act, an employee is only eligible for an HRA exemption if they are renting their home. An employee should be paying rent for the home that he really lives in in order to be excluded from paying taxes on it. Employees who reside in their own homes or do not pay rent are not exempted from the HRA. So I am here to guide you on how to claim HRA when living in own house.

How to claim HRA for own house?

I suggest you read the above answers to know about the

HRA exemption for own house

. It will give you better clarity on the subject. I believe Sanket has explained it quite well. Just to summarise, if you are living in the same house and want to claim HRA for it, that is not possible. But if you own a house but don’t live in it, rather live in a rented accommodation in a different city then you can claim it. 

I would say it depends on the condition you are in, before we can ascertain whether or not you can claim HRA for own house.

What things to keep in mind for HRA exemption?

• Only those who receive a salary are eligible for the HRA exemption. 

• Since the wife and husband live together according to the Income Tax Act, HRA cannot be obtained if the house is in the name of the spouse. 

• Under the New Tax Regime, HRA is not permitted. 

• If you are residing in another city as a result of a job position, you may deduct 1.5 lakh for principal repayment on your home loan. And 2 lakh for interest payments on your mortgage. 

• You are still eligible to claim an HRA deduction under Section 80GG even if HRA is not a part of your income. 

• Self-employed people and individuals who do not get HRA as part of their wage are covered by this category.

This is all you need to know about how to claim HRA when living in own house.

HRA (House rent allowance) is an allowance that salaried individuals get from their employers. People who live in rental properties claim an HRA deduction from the salary and save tax. But can I claim HRA if I own a house in same city? Read below to know about it and other situations:

Let’s say you have taken a home loan and are living in the home you bought with it. Since you are living in your own house, you’ll not be able to claim HRA. So, can I claim HRA if I live in my own house? The answer is no.

Let’s say you live in Delhi but have purchased a flat in Mumbai taking a home loan. Now in this case, you’ll be entitled to HRA exemption.

Let’s say you have purchased a home in Delhi taking a home loan and you are currently staying in Delhi in a rented flat because the home is under construction. In this case, you’ll be eligible to claim HRA.

Let’s say you took a home loan and your home is ready for occupation. You have rented out the same house and you are living in a rented home. Then, in this case, you can claim HRA.

I hope I answered your question on can HRA be claimed for own house.

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