Sage-Tips

Can I claim HRA if my husband is also claiming it?

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 husband and wife claim HRA exemption?

Though HRA is included in the basic salary, it’s not fully taxable. You can claim tax deductions on it. To optimize the tax-benefits from the HRA exemption, you can split it with your spouse. If both the husband and wife are in the same tax slab, then the rent paid can be split 50:50 to enjoy higher tax savings.

Can husband and wife both get HRA?

House Rent Allowance HRA will be paid to both husband and wife even if they work in the same station and did not avail Government Quarters. Even if one of them avails the Government residence in the same station where the other spouse is working, he/she will not be entitled for HRA.

Can I get HRA if I am staying 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.

Can you give rent to your spouse?

2) You can’t pay rent to your spouse and claim HRA deduction. You can only claim HRA under this Section only if you are staying in a rented accommodation and paying rent. This house shouldn’t be co-owned by you and also you don’t own any house in the same city.

Can I rent my flat to my wife?

It’s completely legal. Once the GPA is executed, she can enter into the rental agreement with the tenants despite you being the legal owner of the property. As per law your wife cannot make rent agreement on her name of property owned by you. The rental income will be assessed as her income for income tax purposes.

Can we pay rent to wife?

Legally speaking, you can certainly claim the rent paid to your wife as an expense for the part of the premises used for your business or profession but generally it is more onerous to prove a commercial relationship between husband and wife.

Can I declare rental income in my wife’s name?

It is still possible to declare rental income as belonging to your partner, so as to make use of their personal allowance and marginal tax rates.

Can HRA be paid to both husband and wife at same station?

Please refer to Rule 54 (11), CCS (Pension) Rules in this regard. HRA will be paid to both husband and wife even if they work in the same station and did not avail Government Quarters. Even if one of them avails the Government residence in the same station where the other spouse is working, he/she will not be entitled for HRA.

Can self-employed claim House Rent Allowance (HRA)?

The self-employed can also claim for deductions and HRA tax exemptions, towards the House Rent Allowance (HRA). They can claim the benefits under the Section 80 GG. This Section can also be used to claim the HRA tax exemptions by the salaried employees when they do not receive any HRA.

What is HRA tax exemption under Income Tax Act?

The Income Tax Act Section 10-13A provides for HRA exemption of tax. The deduction will be the lowest amongst: The House Rent Allowances that is given by the employer. 50\% of the employee salary is eligible for HRA tax exemption if he or she lives in any of the Metro cities of India.

Can both husband and wife claim tax rebate on house rent?

In case both husband and wife are earning, and both of them are paying the house rent, both of them can claim the tax rebate related to the HRA, in case they can both furnish the separate rent payment receipts. But for a single rent paid, any one of them can only claim the tax exemption.