Hra claim after getting ii house from inheritance

142 views 3 replies

L Srinivas

Others

43 Points Joined July 2015

I was Claiming HRA with rental income for my rented house. Now I am getting a house from my Uncle (Mother side) by way of his will. Which is also away about 30 KMs from City center as well as my working area, which makes me difficult to live. Understood from some friends that the HRA claim is not allowed if two property owned.

1. Do I eligible to continue my HRA claim as it is inheritance?

2. Can I rent it out & add on to the rental income to claim the HRA benifit?

3. If I gift it to my blood relative, will that attract income tax / Short term tax / Any other tax?

PS: My uncle was not a tax assessee OR PAN card holder.

Thanks in Advance.

Srinivas

Replies (3)

CA Mohit Kumar

accounts taxation

855 Points Joined July 2010

Your House is in City A and you are staying on Rent in same City. You can claim House Rent Allowance exemption provided you can prove that your house is far away from your work place e.g. your flat is in Gurgaon and your office is in Noida. In this case you can claim tax benefits of HRA.

Not neccessary for let out the property to claim HRA benefits.

If you make gift to your blood relative then no tax will be levied..

L Srinivas

Others

43 Points Joined July 2015

Thanks, But I was tild that if you own second house, the HRA claim should not be made. Is it True?

PS : I Stay in Bangalore.

CA Mohit Kumar

accounts taxation

855 Points Joined July 2010

yes , it is true when your house as well as workplace is nearby. But your workplace is far away from house. you have valid reason for claiming exemotion