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HRA and Notional Reny

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ice_cube01

25 Points Posted on 24 February 2021

Dear members,

Currently I am living alone in my owned flat in Noida due to my job. However my wife and kids are residing back in my hometown and I am paying rent for them. I am claiming HRA for the rent paid. Do I still need to show notional income for my flat in Noida despite the fact that it is self occupied. Both my flat and my hometown are in same state i.e. UP.

Replies (4)

Quick Summary

This discussion clarifies the tax implications of claiming House Rent Allowance (HRA) when you own a property that is self-occupied while you pay rent elsewhere. The consensus is that if your Noida flat is self-occupied, you do not need to declare notional rental income from it. This is because for tax purposes, a self-occupied property does not generate income. You can claim two houses as self-occupied, so owning a flat in Noida and renting in your hometown is permissible without incurring notional rent charges on your owned property.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 25 February 2021

For self occupied you are paying rent so no income arises from house property.
no need to show

ice_cube01

25 Points Posted on 25 February 2021

Thanks for your reply. Kindly note that I am paying rent to some one else for a rented house in the hometown. However my flat in Noida is not vacant...so do I still need to show notional rent on my own flat as I am claiming HRA

Prajakta

Student CA IPC / IPCC

62 Points Posted on 25 February 2021

How many houses do you own?.. as you are paying rent in home town that means it's not owned(As what I understood ). as per the provisions you can claim two houses owned as self occupied..