Own a home but pay rent? Claim HRA & home loan benefits under specific conditions

• Salaried employees can claim HRA even if they own a home, provided they live in a rented property in a different city for work.
• You can claim HRA for rent paid to parents, but ensure proper documentation like bank transfers, rental agreement, and rent receipts; parents must report it as income.
• Renting from a spouse is heavily scrutinized; relationship disclosure is mandatory under Draft Income Tax Rules, 2026, especially for shared residences.
• If spouses live in different cities and one rents from the other, it's easier to explain, but rent must be market-aligned and reported as income by the spouse.
• Documentation like rent agreement, receipts, landlord's PAN (if annual rent exceeds Rs 1 lakh), and bank records are crucial for compliance.