If the rent paid is less than Rs. 3,000 per month you need not
submit any proof. But if the rent is more than Rs 3,000 you need to submit rent
receipt / rent agreement to your employer. A one rupee revenue stamp affixed
with the signature of landlord receiving the rent, with other details of the
rented address, rent paid and name of the person who rents it, need to be
mentioned on the receipt.
case the annual rent exceeds Rs 1.0 lakh (Rs 8333 per month) you also need to
submit PAN Card copy of the landlord. In case landlord does not have PAN Card,
you would need to submit a declaration from landlord stating the same.
It is wise to still keep rent receipt and rent agreement
because, at the time of assessment, the Income Tax Officer may demand the
Can HRA be claimed if you stay with parents in their house?
Yes, if your parents own the house you can pay them rent. This
would make your parents landlord. But .they will have to declare it in their
personal income tax return to prevent litigation in the future.
case your parents don’t pay any tax or are in lower tax slab its good idea to
pay them rent.
Can HRA be claimed if you pay rent to spouse?
You cannot claim rent paid to spouse. The relationship between a
husband and wife is not commercial in nature; a husband and wife are supposed
to stay together. So payment of rent to a spouse will not be accepted by the
income tax authorities.
Can HRA exemption as well as a home loan tax benefit be claimed
at the same time?
If you have taken home loan for buying a house in a different
city from where you are working, you are eligible to claim both HRA exemption
and Home Loan Tax benefits.
What if you have taken home loan and have bought a home in the
same city but are not residing in it for genuine reasons?
It could be that the home is at a considerable distance from
your work place. Or, it could be that the home is rather small and your parents
are living in it so you have to stay elsewhere on rent. You still can claim
both, HRA Tax exemption and Home Loan Tax exemption – provided you are paying
your rent. However, it is necessary you have some of your belongings at your
home (the one you own) and you stay there on and off on during weekends and
Despite this, if your employer does not agree and denies your
tax benefits, you will have to claim it at the time of filing your tax returns.
Period in which HRA exemption can be claimed
The period in which the HRA is actually received from the
employer, must necessarily pertain to the period in which the employee actually
pays rent for his accommodation. In case HRA is received for a period in which
no rental accommodation is occupied by the employee, exemption cannot be
claimed.-(SOURCE FROM AMITH KUMAR)