Sage-Tips

Can we include the HRA in income tax return?

You can claim HRA exemption by submitting proofs of rent receipts to your employer. Alternatively, you can claim the HRA exemption yourself while filing your income tax return.

How do I claim HRA if I stay in my home?

One can claim HRA exemption as well as the deduction for interest on a home loan if one owns a house but lives in a rented house. Both these tax deductions are allowed only if the house one owns and the house one lives in are at different locations and there is a genuine reason for not living in one’s own house.

Is HRA part of basic salary?

In order to calculate the HRA, the salary is defined as the sum of the basic salary, dearness allowances and any other commissions. If an employee does not receive a commission or a dearness allowance, then the HRA will be around 40\% – 50\% of his/her basic salary.

Can I get HRA if I live in my 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.

Is rent agreement required for HRA exemption?

To claim HRA, you are asked to submit important documents like rent receipts, rent agreement to your employer before the end of the financial year. If the amount of rent exceeds Rs 1 lakh/annum, the PAN No of the landlord is also required.

Can husband wife both claim HRA?

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. Total rent claimed by both of you cannot exceed Rs 20,000.

Can husband and wife both avail the HRA benefit on the same house?

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.

Can I claim HRA if not claimed through my employer?

If you have not claimed HRA exemption through your employer then you can still do that while filing income tax return (ITR) for the financial year. New Delhi: House Rent Allowance (HRA) is the most common and a major component of a salaried individual’s pay structure.

What is HRA tax exemption?

The benefit is paid to the employees who are living in a rental property and paying rent to a landlord. If so, then can claim tax exemption on the rent amount. Now, many income tax filers are not aware that they can claim a number of benefits under ITR laws of India. HRA tax claim is one such benefit.

Can salaried individuals claim HRA in ITR 2021?

If you have not claimed this exemption through your employer then you can still do that while filing income tax return (ITR) for the financial year. As the last date for filing ITR for FY20 has been extended to January 10, 2021, you still have time to furnish your ITR. Here is how salaried individuals can claim HRA in ITR

What is House Rent Allowance (HRA) and how to claim it?

The House Rent Allowance forms a basic part of an employee’s pay and is generally paid by the employer as being separate from the basic salary of the employee. Having a House Rent Allowance as part of the employees’ salary provides an advantage to employees because they can claim an HRA exemption from the income tax authorities based on it.