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HOUSE RENT EXEMPTION

06 August 2020

I am a pensioner. I am having a house at my native, where my mother is staying. no rental income. I am staying at Chennai. can I claim house rent exemption ?. How much?

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7 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

Yes, you can claim exemption on your House Rent Allowance (HRA) under the Income Tax Act if you stays in a rented house and you are in receipt of HRA from your employer. In order to claim the deduction, you must actually pay rent for the house which you occupies.

A HRA is exempt under section 10(13A) up to, which is least of the following: –

a. Actual HRA received;

b. 50% of [basic salary + DA] for those living in metro cities i.e. Mumbai, Delhi, Chennai or Kolkata) (40% for non-metros); or

c. Actual rent paid less 10% of [ basic salary + DA + Percentage based commission of turnover ]

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Ari Narayanan K (22 Points)
Replied 06 August 2020

I am not getting HRA AND I owned house in different place there no rent receipt

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

As you are receiving pension, if your pension amount is also include HRA than you can claim HRA exemption. (You are required check your pension amount bifurcation like basic salary, HRA, other allowance ect. if any included in pension amount)

second condition to claim HRA is you stays in a rented house at Chennai and actually paying rent for chennai house.

Ari Narayanan K (22 Points)
Replied 06 August 2020

1. in pension no HRA.
2. yes I am staying in rented house at chennai

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

If your pension doesn't include HRA Portion than you can't claim HRA exemption.
As it's prerequisite to claim HRA Exemption that, if you are receiving HRA as part of your salary/pension than only you can claim HRA exemption.

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Ari Narayanan K (22 Points)
Replied 06 August 2020

Sir my question is under section 80 GG

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 06 August 2020

As per section 80GG of the Income tax act non- salaried person as well as salaried persons not getting house rent allowance may claim deduction of house rent paid for self-occupation.

Least of the following is eligible for deduction

Rent paid minus 10% of total income
25% of total Income
Rs 5,000/- per month

“Total income” shall mean total income before allowing deductions u/s 80GG.

The above deduction is not available to the assesse where a residential accommodation is

owned by Individual assesse or his spouse or minor child or HUF at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or

owned by Individual assesse a self-occupied residential house property at any other place which have been valued at “Nil” under income from house property.

So, As you have a house at your native place, not rented, which is considered as Self occupied property (SOP) under house property, you can't claim deduction u/s 80GG.