Benefit of HRA Under New Regime Of income Tax for House Rent


“If HRA is not part of the salary package, one can claim deduction on rent. Further, taxpayer should not own a house in the same city where he is living on rent, nor should there be a house in the name of the taxpayer’s spouse, minor child or HUF of which the person is a member of, in the city where his/her office is located or business is carried out.”

There could be a scenario where the taxpayer switched jobs in 2020 or was employed with an employer offering HRA only for a part of the year. Taxpayers have two options in this case

“ If you are not employed for a part of the year and for the other part you have received HRA income from an employer, the taxpayer should have the right to claim a more beneficial deduction by foregoing another exemption. So, the taxpayer can choose between 80GG exemption and HRA exemption and surrender the other. However, the authorities might choose to contest this. ”


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