- It is a practical situation known to everyone. As of now, no such updates on this matter. Might be in future, some clarity will come.
- If you will opt for new tax regime then such things will be immaterial.
HRA Claim if staying in different city than the work location during Covid -19
Hi Sir/Madam, I have a query related to the HRA claim. I work in IT sector and I switched my job on 17 April '2020. My job location was Noida earlier and new Job location is Bangalore. During the start of April 2020, I moved to my hometown in Lucknow, Uttar Pradesh. My plan was to travel to Banagalore during Mid of April to join new job but due to lockdown, couldn't do that. I joined the new company on 17th April '2020 Online (virtual on boarding) and started working from home. I am still residing in my Hometown (Lucknow) and will remain here till the situation outside gets better. My employer is also fine with 'work from home' and is on no hurry to call me to Bangalore. My question is since I am residing in my hometown and not in my work location can i claim HRA quoting address of hometown. I am anyways paying rent to my mother (she is owner of the house on docuements) I am confused since my current location is different than my work location and both the location are far apart. Please guide..
Asked 5 years ago in Income Tax
Yes, you can claim HRA. But since you are paying rent to your mother, she will show it in her return as income,
Hello,
Yes, you can claim the HRA deduction for rent paid to your mother.
Regards,
CA Hunny Badlani
Hi,
In case you are genuinely paying rent to your mother, you can claim deduction of HRA. However considering that the rent is paid to your mother, it is advisable to have strong documentation to prove the genuineness of the transaction.
The documentation could be as follows
1. Proper Rent agreement
2. Monthly rent receipts
3. Monthly rent payment via banking channels
4. Letter to society for rent arrangements (if its generally provided when you give house on rent to others)
5. Your mother should show rental income in her tax return
Dear Sir,
Yes, you can claim the rent paid to your mother as "HRA Deduction" keeping in mind the current scenario. But as such there is no legal clarification to support this view.
To prove the genuineness of the transaction if required, the documents could be:
1. Rental Income should be shown in the Income Tax Return of your Mother.
2. Rent agreement and Rent receipts.
3. Payment of rent to your Mother though the Bank Account.
Thanks and Regards
Divya Chugh
Dear Sir,
Hope you are doing well !!
Yes, you can claim the deduction of HRA.
To claim HRA, you need to have relevant documents with you. The supporting documents for this purpose would be rent agreement, rent receipts. If the amount of rent exceeds Rs 1 lakh per annum the PAN of the landlord is also necessary.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA