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HRA CLAIM and House Loan claim

CA ALPESH SOMANI (JOB) (195 Points)

15 August 2020

In salary return can we claim HRA if employee is living in self owned house, but employer is providing HRA in form 16.

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4 Replies

vikram chouhan (131 Points)
Replied 15 August 2020

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

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 16 August 2020

No, As per provision of Income tax Act, If you are living in Self occupied property (Not rented house), than you can not claim HRA exemption.

jacinthamary (accountant) (848 Points)
Replied 16 August 2020

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.