In salary return can we claim HRA if employee is living in self owned house, but employer is providing HRA in form 16.
Replies (4)
Quick Summary
You generally cannot claim House Rent Allowance (HRA) if you live in a self-owned property, even if your employer provides it in your Form 16. The Income Tax Act requires you to incur rental expenses and not live in your own house to be eligible for HRA exemption. Claiming HRA in such a scenario would likely be considered taxable.
HRA can be claimed when employee is living in a rental place if employee is living in his own house and employer is paying HRA is fully taxable in the hand of assessee
As per IT act you cannot claim HRA if you live in self occupied own house. But most of the employees in my area claim that in their return. when we say its against the they file their returns themselves.