Understanding HRA for Leased Houses: Can Lease Payments Affect Your HRA Calculation?

Dear Seniors, Please provide me with advice on a leased house. A person is staying in a leased house for 3 years for Rs. 300,000/-.

1. Can we consider this for HRA calculation?
2. Will the lease amount be factored in after 3 years, allowing for HRA calculation?
3. Are there any rules regarding leased houses?

Thank you.

Regards

Leased Accommodation and Tax Implications

If the company is providing leased accommodation, it comes under perquisites, and they will deduct 15% of the basic salary with no House Rent Allowance (HRA). If you have taken the accommodation on lease, you cannot claim tax benefits as you will receive the lease amount back after some time. In this scenario, you cannot provide rent receipts.

Regards,
Pon