Can Husband and Wife Both Claim HRA?

• Both spouses may claim HRA exemption separately only if each receives HRA, pays a genuine share of rent, and satisfies the exemption rules under the old tax regime.
• For a self-occupied, jointly owned home, each eligible co-owner may claim interest up to ₹2 lakh under the old regime, limited to the actual interest and ownership or repayment share.
• The principal-repayment deduction is capped at ₹1.5 lakh for each eligible taxpayer within that person’s overall deduction limit under the old regime.
• A spouse having no salary does not automatically trigger clubbing; the source of funds and any transfer without adequate consideration decide the result.

A home is a place of pride, and it is only right that both the husband and wife are co-owners. Beyond a shared sense of accomplishment, joint ownership offers various tax benefits. Here, in this guide, we show you how couples can claim home loans and HRA to avail tax benefits.

The answer, however, depends on more than the names printed on the sale deed. Ownership share, loan liability, who actually pays the EMI or rent, the use of the property, and the tax regime chosen by each spouse all matter.

Important 2026 update: the Income Tax Act, 2025, came into force on 1 April 2026 and repealed the Income Tax Act, 1961, for tax years beginning on or after that date. The familiar references to Sections 24(b), 26, 27, 64 and 80C now broadly correspond to Sections 22, 24, 25, 99 and 123 read with Schedule XV.

Where ownership shares are definite and ascertainable, each co-owner is assessed separately on their share of the income from the property. The couple is not assessed as an association of individuals merely because they own the property together.

• For a let-out home, rental income, municipal taxes, the 30% standard deduction and loan interest are first computed under the house-property rules and then attributed according to the legally supportable ownership share. The current Act allows a 30% deduction from annual value and interest on borrowed capital.
• For a self-occupied home, each eligible co-owner is treated as individually entitled to the interest relief. Under the old regime, the aggregate ceiling is ₹2 lakh per taxpayer across eligible self-occupied properties, not ₹2 lakh for the couple together.

A person normally needs to be both an owner and a borrower who bears the relevant payment. A co-owner who is not liable for and does not pay the loan cannot claim it merely because their name appears in the deed. Likewise, a co-borrower who is not an owner generally cannot claim the house-property deduction. The same EMI cannot be deducted twice; each claim must stay within the claimant’s actual, evidenced share.

• Besides deductions on interest, each co-owner can claim a deduction of up to 1.5 lakhs under Section 80C for the repayment of the home loan principal.
• Note that this 1.5 lakhs is included within the overall limit of Sec. 80C.
• From 1 April 2026, this deduction will be in Section 123 read with Schedule XV of the Income Tax Act, 2025.
• The ₹1.5 lakh ceiling continues for each eligible individual, and housing-loan principal payments made to specified lenders remain qualifying payments.
• Both spouses may therefore claim independently, but only under the old tax regime and only to the extent each actually repays principal for a property owned by that spouse.
• The personal ₹1.5 lakh limit also covers other eligible items, so a spouse who has already exhausted it through a provident fund, insurance or another qualifying payment gets no extra housing loan limit.
• Keep the registered sale deed, loan agreement, annual lender certificate and bank trail. If the EMI is paid from one joint account, preserve records showing each spouse’s contribution.

Both working spouses can claim HRA exemption for the same rented residence when each receives HRA, genuinely pays part of the rent and can prove that payment. Each spouse must calculate the exemption separately; one person cannot claim the other person’s rent payment.

For each spouse, the exempt amount is the lowest of actual HRA received, rent paid minus 10% of salary, or 50% of salary for Delhi, Mumbai, Kolkata, Bangalore, Ahmedabad, Hyderabad, Pune, and Chennai and 40% for other locations.

You can use the real rent-sharing arrangement instead. Put both names in the rent agreement where possible; obtain receipts that identify the payer and pay through traceable banking channels.

HRA exemption is not available under the default new tax regime because Schedule III item 11 is specifically excluded.

Also Read: House Rent Allowance (HRA): Meaning, Deduction & Exemption

If both you and your partner are co-owners and co-borrowers of your residential home, here’s how you can both claim home loan benefits and enjoy higher tax savings:

First, confirm the ownership percentage in the registered deed. Next, match each spouse’s loan liability and actual interest or principal payment to that share. Finally, only the eligible amount, as supported by the lender’s annual certificate and bank records, should be claimed. A certificate showing total joint interest does not permit both spouses to claim the entire figure.

Under the old regime, a qualifying self-occupied property can support a combined family claim of up to ₹4 lakh only when each spouse independently qualifies for up to ₹2 lakh and the actual interest and their respective shares are sufficient.

A non-earning spouse’s rental income is not automatically clubbed with the earning spouse’s income. If that spouse genuinely owns a definite share purchased from independent funds, the share is computed in that spouse’s hands under the co-ownership rule, even if the spouse has no salary.

Clubbing becomes relevant when one spouse has transferred funds or assets to the other without adequate consideration. For house property transferred without adequate consideration, Section 25(a) of the current Act treats the transferor spouse as the owner; the comparable legacy provision was Section 27, not simply Section 64.

For income arising from other assets transferred to a spouse without adequate consideration, the current clubbing rule is in Section 99, corresponding broadly to legacy Section 64.

This distinction matters in a joint purchase. If the earning spouse funds both ownership shares as a gift, putting the non-earning spouse’s name on the deed does not by itself guarantee separate taxation of that rental share. The funding trail and legal form must be reviewed before filing.

A couple should compare both regimes separately because one spouse may benefit from the old regime while the other may pay less under the default regime. Marriage does not require both spouses to choose the same regime.

• Joint ownership does not create a separate GST concession.
• For residential projects commencing on or after 1 April 2019, the construction of an affordable residential apartment generally attracts GST at 1%, while other residential apartments generally attract 5%, both without input tax credit for the promoter under the prescribed scheme.
• Affordable housing generally means a residential apartment with a carpet area up to 60 square metres in specified metropolitan cities or 90 square metres elsewhere and a gross amount up to ₹45 lakh.
• A sale of a completed building does not attract GST if the entire consideration is received after the completion certificate or first occupation, whichever is earlier.
• A possession-linked plan does not automatically remove GST.
• If any part of the consideration is received before that completion or first-occupation cut-off, the statutory completed-building exclusion does not apply; tax timing follows the invoice or payment rules for services, and supply is recognised to the extent covered by an invoice or payment.
• An ordinary homebuyer cannot use the promoter’s blocked input credit to reduce the purchase price tax, and the 1% and 5% residential rates operate without promoter ITC.

As a couple, it's always a good idea to plan together before you file your taxes to enjoy higher tax savings as a couple.

Base the plan on real ownership, real payments and complete records rather than an artificial split. Compare regimes for each spouse, reconcile the lender certificate with bank statements, and review any funding provided to a non-earning spouse before reporting rental income.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

Also Read: Tax Savings with HRA and LTA: A Guide for Employees