HRA rules?

Question

-If both husband and wife is working in the same city, then weather both of them are entitled to claim HRA Rebate in Income tax or only one person is entitled.

-If both of them are working in diffrent cities then what sud be the provisions?

Please update and help.

Answer 1

If the rental agreement is in in the name of yourself and your spouse, the rent paid can be claimed as 50% each - if you are paying 60% and spouse 40%, then the spouse's receipt also should be produced. If two separate receipts are not provided, you can ask the owner to use both names with % marked against each.

This is very much feasible since there are tonnes of bachelors who do it this way, with all their names included and all claiming equal %.

If both are in different cities, it does not matter at all - both can claim full amount individually.

Answer 2

if both are living same house, only one can get HRA rebate otherwise both

regards

skkuumar

http://www.askforhrd.com/index.php?optio...

Answer 3

- If you are working in Same city, only one can claim the HRA.  For that you need to produce the original rental receipt to your company.

- If you are working in different city AND if you have rented two home in different city, you can claim the rebate by submitting it in either company.

Actually,

- You can try to claim in both IT rerurn. In this case, you need to make one fake rental receipt and either you or your wife has to submit it to the company.

- Once you have HRA rebate in form 16, there are very less chances of any query.

- You may get query if you are calculating HRA rebate on your own and submitting the documents to IT Department instead of your company.

I hope this would help.

Answer 4

http://sify.com/finance/tax/fullstory.ph...

Answer 5

Read Income From Salary-- HRA

http://mytaxes.in/index.php?topic=17.0

If both are living in same rented premises, then either one who pays the rent can deduct or you can both share.

If you live in different premises, then both can claim.

Answer 6

There is no such provision that the couple staying in one city are not able to claim HRA Exemption from salaries.

If you are able to provide rent reciepts to your employer you will get exemption. HRA is a Deduction against your income.

Though you are staying in same city or different it is depending on the expenditure incurred by you. Ofcourse if both are you staying in same city then both will be in the same house. so the Owner will give only one rent statement. On whose name it was given, that person will be eligible for deduction.

But you are not eligible for 100% deduction The Prvisions in Income Tax are as follows.

The deduction is to the extent of least of the following

- Rent paid in Excess of 10% of Salary

- 40% or 50% of Salary*

- Actua HRA Paid

Which ever is Lower.

* The Expression 50% is applicable for assessee staying in  Chennai. Mumbai, Delhi, Colcutta.

* The expression Salary means Bsic Salary

So If you are able to provide two rent Receipts then you will get exemption.

If Not it is beneficial to Show it any one of you whose Taxable Income Is More .