Sage-Tips

Can HRA be claimed if you pay rent to spouse?

A taxpayer is entitled to claim the HRA exemption for rent paid to his or her spouse provided there is documentation to prove that the arrangement is genuine. Neither the Income-Tax Act, 1961 nor the Income-Tax Rules, 1962, prohibit claiming HRA exemption on the rent paid to one’s spouse.

Can I pay rent to my own house?

Since rent is paid to owners, the property must be owned by your parents. Remember that you cannot be an owner or co-owner of this property since you cannot claim tax exemption on rent paid to yourself.

Is the share of co ownership taxable?

Is a co-ownership taxable? Generally no, because the activities of the co-owners are usually limited to the preservation of the property owned in common and collection of the income therefrom.

Can HRA be claimed if living in own house?

Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both, the principal and interest repaid on the home loan.

Can my wife and I claim HRA if we pay rent together?

My wife and I together pay Rs 20,000 a month as rent and the lease agreement are in both our names. Can we both claim HRA benefit? Yes, there is no restriction on claiming HRA benefit by both the spouses. If you and your wife both are paying the rent then both can claim HRA benefit separately for the respective share.

How to calculate HRA exemption for rent paid to parents?

The rent paid by the employee to his parents is also eligible for calculating HRA exemption. However, the parents need to add such rental income along with their other taxable income in order to pay tax if any on the rent received by them from their sons or daughters.

Can I claim HRA if my sister is staying in parents house?

However, the parents need to add such rental income along with their other taxable income in order to pay tax if any on the rent received by them from their sons or daughters. 3) in your case your sister is staying in parents house and not paying any rent she cannot claim benefit of HRA

What is HRA deduction and how to avail it?

As HRA deduction reduces taxable income substantially, salaried people try to avail the benefit. However, the benefit may only be available when you take a house or a portion of it on rent, which is not owned by you and actually pay rent for staying in the rented accommodation.