Adani Enterp. 2544.35↑6.90(0.27%)
Adani Ports 726.85↑2.35(0.32%)
Apollo Hospitals 4609.90↑41.75(0.91%)
Asian Paints 3128.40↑4.85(0.16%)
Axis Bank 926.95↑5.90(0.64%)
B P C L 364.30↑1.00(0.28%)
Bajaj Auto 4615.95↓-28.05(-0.60%)
Bajaj Finance 6904.50↑63.35(0.93%)
Bajaj Finserv 1439.15↑11.80(0.83%)
Bharti Airtel 817.95↓-4.75(-0.58%)
Britannia Inds. 4596.20↑32.90(0.72%)
Cipla 951.35↑5.90(0.62%)
Coal India 241.50↑1.45(0.60%)
Divi's Lab. 3514.00↑78.35(2.28%)
Dr Reddy's Labs 4530.95↑27.00(0.60%)
Eicher Motors 3690.35↑38.85(1.06%)
Grasim Inds 1688.30↓-13.05(-0.77%)
H D F C 2650.60↑3.20(0.12%)
HCL Technologies 1139.20↑23.20(2.08%)
HDFC Bank 1615.80↑6.20(0.39%)
HDFC Life Insur. 577.20↑5.15(0.90%)
Hero Motocorp 2745.15↑12.35(0.45%)
Hind. Unilever 2652.35↑55.10(2.12%)
Hindalco Inds. 413.55↑9.30(2.30%)
ICICI Bank 950.70↑10.85(1.15%)
IndusInd Bank 1268.05↑4.65(0.37%)
Infosys 1317.45↑13.10(1.00%)
ITC 443.60↑2.45(0.56%)
JSW Steel 701.70↑5.05(0.72%)
Kotak Mah. Bank 1945.05↑15.10(0.78%)
Larsen & Toubro 2218.45↑13.75(0.62%)
M & M 1281.85↑4.05(0.32%)
Maruti Suzuki 9399.95↑118.10(1.27%)
Nestle India 21581.75↑106.85(0.50%)
NTPC 174.50↓0.00(0.00%)
O N G C 163.75↓-2.25(-1.36%)
Power Grid Corpn 237.30↓-0.65(-0.27%)
Reliance Industr 2506.50↑66.55(2.73%)
SBI Life Insuran 1195.75↑18.40(1.56%)
St Bk of India 586.00↑4.75(0.82%)
Sun Pharma.Inds. 969.90↑24.90(2.63%)
Tata Consumer 789.70↑9.40(1.20%)
Tata Motors 518.45↑3.60(0.70%)
Tata Steel 106.40↑1.55(1.48%)
TCS 3328.90↑35.40(1.07%)
Tech Mahindra 1114.75↑16.65(1.52%)
Titan Company 2742.15↑34.20(1.26%)
UltraTech Cem. 7721.85↑100.10(1.31%)
UPL 688.10↑12.30(1.82%)
Wipro 401.70↑7.60(1.93%)

House rent allowance: Tax exemption can be claimed on rent paid to parents

Prepare an agreement, pay rent into their bank accounts, and ensure they pay tax on it

Top Realtors getting into 'second homes' concept at leisure destinations

Premium

4 min read Last Updated : Feb 27 2023 | 10:22 PM IST

Salaried individuals who opt for the old tax regime, live in rented houses, and have the house rent allowance (HRA) component in their salary are eligible for HRA tax exemption under Section 10 (13A) of the Income-Tax (I-T) Act, 1961 provided they are able to meet certain conditions. This exemption is not available under the new tax regime from assessment year 2021-22 onwards.

Let us examine a few grey areas where it is not immediately apparent if a taxpayer is eligible for this exemption.

Living on rent while owning a home

Normally, if you pay rent for accommodation, you get tax exemption on HRA. Archit Gupta, chief executive officer (CEO), Clear. in, says, “The caveat is that the house you live in and the house you own should be in different cities.”

Sometimes, however, people have a property in the same city and yet live in rented accommodation. In such a