If you are living with your friends, colleagues or others in a shared flat, you can avail HRA benefit in proportion of rent that you are paying. HRA could be claimed in your Income-tax return only if you have submitted rent receipts to your employer. Hence you need to make sure that you are issued a separate rent receipt by your landlord for amount paid by you.
How is HRA calculated?
The deduction available is the minimum of the following amounts–
- HRA received (if you have stayed in rented accommodation for part of the year, consider HRA for only that part).
- 50% of your Basic Salary when you live in a rented place in Mumbai, Calcutta, Delhi or Chennai OR if you are in any other city 40% of your Basic Salary
- Rent paid (proportion of rent paid by you) less 10% of Basic Salary
So, HRA for shared flat is calculated in the same way as normal HRA the only difference is , here you claim HRA on your share of rent paid! Click here to know more about HRA.
Please Note :
- In order to claim HRA , you need to submit rent receipts to your employer. Also, you are required to have a proper rent agreement , which can be submitted to your employer if asked by him.
- You need to provide PAN of landlord as well, if your annual rent exceeds Rs. 1,00,000.
- You can generate rent receipts from our myITreturn App. Click here to download the myITreturn app.