House Rental Allowance or HRA is a component in salary structure of an employee for which exemption can be claimed. If you are a salaried employee living with your parents you must be wondering how to claim HRA when living with parents. Well, the question is can you actually do it? If yes, then what is the process. To help you out I am here. You can expect some solution by reading this answer.
Can I claim HRA if I live in my own house?Let us get this question out of the way first. There are several cases to consider when answering this question:
Living with parents in your house: Yes
Living in your own house (owned by you to be very specific): No (but there is a provision to claim tax deduction on home loan interest)
Own a house but live in a rented house: Yes (you can claim HRA and deduction on home loan interest)
I know claiming HRA may seem a tedious task especially when you don’t keep a track of payment made. Here is a guide for you to make the process a tad bit easier
Make the regular rent payments with the proper trail to track the statements
It is advised to make a rent agreement if the payments exceed Rs. 1 lakh per year. Get the rent receipts from your peers
After getting these two steps in sync, you just have to attach the rent payment proof while filing the ITR or to your employer (as suitable to you) and apply for the claim on HRA.
I hope now how to claim HRA when living with parents is clear to you.
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Authors Of The Question
How to claim HRA when living with parents?
Sameer
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1 Answers
3 Year
2021-09-01T13:37:23+00:00 2021-09-01T15:59:04+00:00Comment
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