For many individuals, the question of whether they can claim the rent for two rented premises under the House Rent Allowance (HRA) exemption is a common concern.
If you find yourself in a situation where you reside in a rented property and your parents inhabit a separate rented house, it's essential to understand how HRA exemptions apply. In this article, we'll clarify whether you can claim the rent for both your rented premises and your parents' rented house under HRA.
Exemption in HRA for One House
If you are residing in a rented property while your parents are also in a separate rented accommodation, it's important to note that you can only claim the exemption for one house under HRA. In other words, you are entitled to HRA benefits based on the rent paid for your own residence, not for your parents' rented premises.
Clarification on Claiming Rent for Two Rented Premises
1. Primary Residence Takes Precedence:
The HRA exemption is primarily designed to provide relief for individuals who are renting a property for their own accommodation. Therefore, the rent paid for your primary residence, where you reside, is the only eligible amount for consideration under HRA.
2. Exclusion of Parents' Rented House:
Unfortunately, you cannot claim the rent paid for your parents' rented premises from HRA. This is because the exemption specifically applies to the rent paid for the house you occupy as your primary residence.
3. Tax Efficiency Considerations:
While it may seem appealing to try and claim both rents, it's important to prioritize adherence to tax regulations. Attempting to claim the rent for your parents' rented property could lead to complications with the Income Tax Department.
By adhering to these guidelines, you can ensure that you remain compliant with tax laws and avoid potential complications with the Income Tax Department in the future.