As long as you are paying rent for your residence, tax benefits for HRA are valid. However, if your own property is rented out and you are living in a rented space, you can take advantage of tax benefits on your home loan as well as HRA tax benefits. However, in this situation, you must reveal your rental income so that the government can withhold the appropriate amount of tax.
Tax exemptions cannot be claimed for both owned and rental properties if they are in the same city. One may, however, qualify for a tax exemption on both the housing loan and the HRA if they can demonstrate that their privately held property is quite remote from their place of employment.
What are the rules of HRA?
HRA is calculated as 40% of the base salary for people who live in non-metropolitan areas and as 50% for those who live in metropolitan areas.
You don't have to pay your rent to a landlord alone in order to receive HRA benefits. Rent can be paid to parents, and individuals can provide the necessary invoices to be free from HRA.
However, proving that you pay your spouse's rent does not qualify you for an HRA exemption. According to income tax law, this is not permitted.
Rent receipts must be provided as proof in order to qualify for the tax break.
In order to properly deduct taxes from the landlord's rental income, PAN card information must be provided.
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Authors Of The Question
I have my own house in Chennai but my family stay in a rented house in some other city. My home loan is cleared, and I am not going to claim an exemption on account of the interest on the Home loan. Can I get an exemption against HRA paid as per eligibility?
Pradeep Jha
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1 Answers
1 Year
2023-04-24T09:36:13+00:00 2023-05-10T20:18:11+00:00Comment
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