HRA claim, wife as owner

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1

Hi,

Can employee claim HRA benefit if they have a rental agreement with his wife?

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2

No, HRA cannot be claimed for property in Wifes name

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3

Hi,

Due to the current pandemic scenario, many employees have vacated their accommodation in Blore and went back to their home town. Some of them have rented places there, can we give the HRA benefit for such employees?

Regards
Sarita

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Hi @Manjunath

Yes, you can pay rent to wife or parents to claim Indian HRA tax exemption. Even if the agreement you made is with your as owner and you as tenant.

Hope this addresses

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5

Hi @Sarita.Magar

Until and unless a valid rental agreement + Bills are submitted we can go ahead and accept the same.

even 2 HRA’s are claimed by many at this point In time, as two rents are being paid. (New normal ;))

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6

Hi Babu,

Thank you for the info !

Regards
Sarita

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7

Employee cannot take HRA benefit if they are staying with their soupse.

If the employee shows he/she paying rent, there must be a complete house or a part of house with clear demarcated portion in which you are staying on rent. A tenant can’t share living spaces in a house with the landlord in a rented accommodation. So, if they are staying along with their spouse in the same accommodation, employee can’t claim HRA deductions.

If the employee has to claim HRA then he/she must be staying on rent in the house of spouse without sharing the living space and with a valid agreement and proof of rent paid.

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8

no way to claim wife Housing loan. If it is in joined property and husband is paying full payment from him, then the situation he has to submit the Joint declaration and can claim 100% housing loan in IT filing.

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9

Can husband and wife both claim HRA in IT declaration for a rented apartment?

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There is difference between Tax evasion and Tax Avoidance. Husband and Wife can claim HRA separately provided that the agreement supports the same, Rental receipts are provided separately and the payouts for rent for respective share has been paid from individual accounts. For now Income Tax Department has not come back with these things, but Tax Avoidance is legal but not Tax evasion

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