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Hi Friends, If both the husband and wife are working, so can both take an exemption for HRA in filing ITR or can only one person take the benefit?
From India, Jammu
Partner - Risk Management
Agm - Hr&admin
General Manager-hr & Admin
Taxation And Hr
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No any one alone can avail exemption for HRA. While submitting investment proofs at office your HR will ask for a self declaration that as employee you alone availing the benefit and spouse if working not availing the exemption. Employer took such declaration to safeguard their side. For salaried cases the same will reflect in form16 and hence you cannot manipulate anything during individual IT filing.

From India, Madras

Hi Rakesh,

In the case where both the husband and wife are working and are living in a rented accommodation, the question often arises as to whether both individuals can claim an exemption for House Rent Allowance (HRA) in their respective Income Tax Return (ITR) filings, or if only one person is eligible to take the benefit. This is a common query among taxpayers, and it is important to understand the rules and regulations governing this matter.

According to the Income Tax Act, 1961, if both the husband and wife are working and are living together in a rented accommodation, they can both claim the HRA exemption in their individual ITR filings. However, there are certain conditions that need to be met in order to avail of this benefit.

Firstly, both individuals must be paying rent for the accommodation in which they reside. The rent paid should be in accordance with the terms and conditions of the rental agreement, and should be supported by proper documentation such as rent receipts or a rental agreement.


From India, Bangalore

The current Income Tax rules are explicit, so companies do not want to take a risk
They ask for copies of the agreement for rent, pan card and proof of payment of rent (rent receipt). Few HR departments today ask for declaration of other partner not taking HRA exemption. Ultimately, the liability for tax is of the employee not the company as long as the later took adequate care to decide the total deduction of TDS.

Some people have split the rental agreement, having both husband and wife separately have agreements for the same flat and paying the rent separately. In such cases, they may be able to get away with getting exemptions twice.

But remember that HRA exemption is restricted to lower of :
Actual Rent
50% of salary

So splitting the rent may not resolve the problem in all case

From India, Mumbai

The one who is paying the House Rent can only avail the tax exemption.
From India, Mumbai

Yes, Both can claim exemption subject to conditions as follows :

01. The Leave and License / Rent agreement must be in both the names
02. The rent/license fees should have been paid from Individual Bank account.
03. Only the payment made from individual bank account would be eligible for HRA exemption.
04. If payment made only from once bank account and claimed 50-50 by individuals, will not allow.
Under the New Tax Regime HRA exemption is not allowed.

From India, Pune
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