Can you claim HRA for rent paid in another city?

Yes, you can claim HRA for both house rent and home loan interest if you are living in another city. 

I work in Bangalore where I have a house I rented and I have also purchased a house in Delhi for my parents. 

Under my condition I can claim HRA for the apartment I have rented also I can claim HRA for my loan. Before claiming HRA I provide the rent receipts and the home loan receipt to get the benefit of HRA.

I will show you how I reduce my tax by claiming HRA:

My monthly basic salary is Rs. 50,000. I receive an HRA of Rs. 25,000 per month. The rent I pay for an apartment every month is Rs. 12,000. and the EMI of the parental house in Delhi is Rs. 40,000. 

I can claim my HRA based on the amount of tax exempted on conditions:

1. I get an HRA of Rs.25,000 per month, so annually it comes to Rs. 3,00,000

2. The 50 % of the salary is (50,000 x 12) x 50% = Rs 3,00,000

3. By subtracting the rent I am paying from 10% of the basic is Rs.

   (12,000 x 12) – 10% of salary [(Rs. 50,000 x 12)] = Rs. 84,000

Since the HRA exemption is available on the least amount of the all three conditions, therefore, exemption on the amount of Rs. 84000 is available in my case.

I also paid the home loan interest annually which went up to Rs. 2. 50 lakhs. So I could claim that in my ITR under section 80C.

I hope your query ‘can you claim HRA for rent paid in another city’ is resolved now.

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Hi, Friend,

In Bangalore, my brother works as a software developer. Due to the COVID-19 outbreak, his employer gave permission to work from home, hence he moved out of his rented apartment in Bangalore to our family's home in Kolkata, which is also a rented place. As a result, he intended to claim HRA for the rented house in Kolkata. But, he was really concerned about can HRA be claimed for different city?

His office's HR department has informed his employees that any HRA claims for rent paid in a location other than their place of employment will be denied.

My brother was quite confused and enquired about his query of can I claim HRA for different city? I am working in the HR department, hence I was able to clarify the legal framework to him;

• Under Section 10(13A) of the Income Tax Act, a salaried individual can claim tax benefits for HRA received from his employer if certain conditions are met

• There are no restrictions on where an employee can claim the HRA exemption as long as the residential accommodation is occupied by the employee and all other requirements are met

• The HRA benefit can only be claimed if the employee has paid the rent in full and the residential property for which the rent is paid is not owned by the employee, according to the law

As a result, the answer to his question, Can HRA be claimed for different city, became clearly evident to him. It was obvious that the HR department's position was utterly erroneous and illegal.

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Because of the COVID-19 outbreak, many of us corporate employees in India were doing our work from home. As a result, many of us who were renting apartments in our work location continued to live in our hometowns. Most of us receive the House Rent Allowance (HRA), and many of my coworkers and friends were concerned about it and asked me “can I claim HRA for rent paid for parents in another city or not?”.

Some organisations’ HR departments had already informed their employees whether or not they will consider an HRA claim for rent paid at a location other than their place of employment. But I will explain to you how to submit an HRA claim for another city in this response.

Can I claim HRA for 2 houses: Conditions for claiming HRA?

In accordance with specific requirements, a salaried individual may claim tax benefits with regard to HRA received from his employer under Section 10(13A) of the Income Tax Act. As long as the personal accommodation is inhabited by the employee and all other requirements are met, the section makes no mention of the location where the employee may claim the HRA exemption. The law further stipulates that in order to be eligible for HRA benefits, an employee must have paid the rent for the residential property in question and not the employer.

So long as you meet both requirements, you are eligible to claim the HRA benefit for any location.

What are the documents needed for an HRA claim?

In most cases, it is the responsibility of your employer to complete the information. All you have to do is provide your company with the paperwork.

• You must have a rent agreement that is properly signed and stamped and that includes all property information.

• Rent receipts serve as documentation of the interactions between you and the landlord as well.

Can I claim HRA if I own a house in different city?

Yes. If the employee pays the rent to his/her parents or owns a house in a different city or pays rent to another landlord in a different city, he is eligible to get HRA benefits. This is also the answer to the question, “C

an I claim HRA exemption for rent paid for two locations?”.

When filing an income tax return in such circumstances, the rent paid by an employee to his parents or to the landlord in a different city must be disclosed as rental income (ITR). A valid rental agreement must also be in place to serve as proof of payment when requesting the allowance. Keep in mind that the rent you pay your parents or landlord is considered part of their taxable income.

How much HRA can you claim?

As already explained by Miss Ana, the maximum amount you may claim HRA benefits is outlined in Rule 2A of the Income Tax Rules of 1962. The lowest of the following amounts is therefore the limit:

1. i) The exact amount of HRA received.

2. ii) The amount of rent that exceeds 10% of your income.

iii) 50% of your wage if the lodging is in one of the four metro cities or 40% of your salary in all other cases.

I believe I have answered your question, “

can I claim HRA for rent paid for parents in another city or not?”.

My best friend lived in the bustling city of Mumbai for work. However, due to personal reasons, he had to temporarily relocate to another city for a few months. Even though he was staying in a rented accommodation in the new city, he had been wondering “can I claim HRA for rent paid in another city?” He came up to me with this question. I knew a thing or two about this, so, this is how I helped him.

HRA claim in different city

You can claim House Rent Allowance (HRA) for rent paid in another city if you meet certain conditions. HRA is a component of salary provided by employers to employees to help them meet their rental expenses. To claim HRA for rent paid in another city, you need to fulfill the following criteria:

1. Employment in a different city: You must be employed in a city other than the one in which you pay rent. Your employer should have a provision to grant HRA for employees working in different locations.

2. Rent payment: You must actually be paying rent for a residential accommodation in the city where you work. It is important to have proper rent receipts or rental agreement as proof of rent payment.

3. Rent exceeds 10% of salary: The rent you pay should exceed 10% of your salary. HRA can be claimed for the excess amount over this threshold.

4. Declaration to employer: You need to declare the details of your rental accommodation and rent paid to your employer. Your employer may require supporting documents such as rent receipts or rental agreement.

Can I claim HRA for 2 house in different city?

No, you cannot claim House Rent Allowance (HRA) for two houses in different cities simultaneously. HRA can only be claimed for the house in which you are residing and paying rent. If you own more than one house or have multiple rental accommodations in different cities, you can only claim HRA for the house in which you are actually residing and paying rent. The other house would be considered as a self-occupied property or not eligible for HRA exemption. It is important to provide accurate information to your employer regarding the house for which you are claiming HRA to avoid any discrepancies or penalties.

So, can I claim HRA for rent paid in another city? Now you know the answer.

My brother owns a house in Kolkata. However, as his workplace is in Bangalore, he stays there in a rented apartment. I heard him asking his Banker friend, “Can I claim HRA for house in different city?” 

When claiming the allowance, you must also have a valid rental agreement in place to use as proof of payment. The rent you pay is considered a part of the landlord's taxable income includes. 

Can I claim HRA for another city?

His friend informed him that an individual is eligible for HRA exemption if he/she has rented a home in a city other than the one in which he/she owns a home.

After understanding whether can I claim HRA in different city. My brother also asked about the HRA rules while having several rental properties.

Even if you own multiple homes or have rental properties in various cities, you are only eligible to get HRA for the home in which you are really staying and making rent payments.

I hope your query ‘Can I claim hra for house in different city’ is resolved now.

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If you want to know, can

HRA be claimed for 2 houses?

Let me answer you.

Yes, you can claim House Rent Allowance (HRA) for rent paid in another city. However, the following conditions should be met:

1. You must be employed and receive HRA as a part of your salary.

2. It's important to maintain records of rent payments, such as rent receipts, to support your claim.

3. You should have a valid rental agreement with the landlord. It includes the landlord's name, the address of the property, the rent amount, and the duration of the agreement.

4. You can claim HRA for the city where you are employed.

The amount of HRA you can claim as an exemption is subject to certain limits.

• Actual HRA received from your employer.

• 50% of your basic salary if you live in a metro city (cities like Delhi, Mumbai, Kolkata, Chennai) or 40% of your basic salary for non-metro cities.

• Rent paid minus 10% of your basic salary.

This is all about

can we claim HRA for 2 houses

.

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