HRA Rent claim

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This query is : Resolved

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This discussion explores whether Mr A can claim HRA deduction on a lease property where he pays a substantial lease amount. The consensus is that HRA exemption under section 10(13A) generally cannot be claimed based on a notional value if no actual rent has been paid. Key requirements include providing the property owner's PAN if rent exceeds £1 lakh per annum, and ensuring the owner agrees to declare the rent as income and provides rent receipts.

swetha

swetha (Querist)

23 June 2021 Mr A is leaving in the lease property paying Rs 2000000 . Can he claim HRA Deduction by providing rent receipts which is of 12% pa of lease amount i.e Rs 240000 which is equivalent to market rent to employer for claiming the HRA Deduction

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

23 June 2021 No, as I understand, in this case, HRA exemption u/s 10(13A) cannot be claimed based on a notional value as no rent has actually been paid. Further, PAN of the building owner required if rent is >1 lac pa.

swetha

swetha (Querist)

23 June 2021 PAN Number of the owner will be provided

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

23 June 2021 Do you have a revised rental agreement to this effect?
Also has the owner agreed to declare such rent as his/her income?