HRA Deduction in ITR

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If you own your home, you generally cannot claim deductions for House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act. This is because the exemption requires you to have paid rent for accommodation you occupied. Similarly, claiming transport allowance deductions has specific conditions related to your posting or residence. However, you can still claim the standard deduction of Rs. 50,000.

Husseini

Husseini (Querist)
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12 August 2022 The Individual person drawing Gross Salary of Rs.795000/- Including HRA & Transport Allowance. He is residing in his own house.
Can he eligible to claim deduction in ITR of House Rent allowance u/s.10 (13A) & Transport Allowance u/s.10(14)(ii)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 August 2022 No. Both not eligible, except standard deduction of Rs. 50,000/-

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Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)
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17 August 2022 Per Explanation to s.10(13A), for Claiming HRA exemption, the recipient must not be occupying a residential accommodation owned by him and also the recipient assessee must have actually incurred expenditure towards payment of rent in respect of accommodation occupied by him.

As regards travel allowance, it will be covered u/s.10(14)(ii); there is no requirement of actual expenditure here, however such allowance must be related to the place of recipient assessee’s place of posting or residence. Amount exempted under this section will be to the extent as may be prescribed by department.

Author: Advocate Ravish Bhatt
Gmail: ravishdbhatt@gmail.com
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