Can you claim HRA for rent paid at your native place?

Many people are questioning the legality of collecting House Rent Allowance (HRA) although working from home because of the volatile macro COVID-19 environment. Let us investigate this option. 

A salaried worker can claim HRA benefits from his employer if certain requirements are met, according to Section 10 (13A) of the Income Tax Act. Furthermore, the clause does not specify whether an employee must prove rent paid to the same landlord year-round. As far as the rent is paid, an employee can present numerous landlord credentials along with the rent proof to claim the HRA benefit.

Which papers are required for an HRA claim?

In theory, it is an employer’s responsibility to fill in the blanks for you. You only need to provide the paperwork to your employer.

  • You’ll need a rent agreement that’s been stamped and signed, and it should include all of the property’s specifics.
  • Rent receipts serve as documentation of the transaction for both you and the landlord.

How could an employee claim HRA benefits if he lives with his parents while working from home?

Yes, an employee can claim HRA benefits if he or she pays the parents’ rent. In this kind of instances, an employee’s rent paid to his parents must be reported as rental income once they submit an income tax return (ITR). Furthermore, a genuine rental agreement must be in existence to be shown as payment made in order to collect the reimbursement. Note that the rent you pay your parents is taxable income for them.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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