Whether it is a long- or short-distance move, it is considered challenging, and highly demanding for several reasons. Apart from the physical effort you will have to put into your relocation, there are some financial considerations. The cost of moving can add up rapidly. Professional movers, a moving truck rental, packing materials, and a storage unit are all possible outlays. Moving might be difficult if you have to worry about these costs while you are already strapped for cash.
However, if you decide to move with HRA, also known as House Rent Allowance, not only can you minimize all the stress associated with the relocation process, but also get financial support.
Advantages of moving with the House Rent Allowance
Your housing costs can be covered with the help of the House Rent Allowance (HRA). Moving costs might be reduced by the allotted amount that is put toward the down payment on the new rental property. On the other hand, with HRA moving assistance, you have full flexibility to select a house or flat according to your needs. You have the option of choosing a spot that is either close to work or to other places of interest, or both.
Apart from that, you will have more options for rent. The flexibility to choose from a wider range of rental properties is increased. Accommodations of varying sizes, features, and quality may be available to you. Stability is yet another huge advantage you receive with the House Rent Allowance. Your housing costs may become more regular if you receive HRA. Knowing that some of your rent is already paid for can help you better manage your money.
Making HRA claim
To be able to make the House Rent Allowance claim, one ought to follow the steps given below.
Prepare the required documents well in advance
Make sure to collect all the necessary documents in order to support your HRA claim. Here is what you may need:
- Permanent account number of your landlord. For tax purposes, you will need to have your landlord’s PAN information on hand.
- Rent receipts. Rental payments should be documented with receipts from the landlord. You and your landlord’s information, as well as the date range covered by the receipt, the total amount paid, and the landlord’s signature, should all be included.
- Rental agreement. Keep a duplicate of your lease or rental agreement just in case you need to show it as proof of your tenancy.
Familiarize yourself with tax regulations
Learn the rules and restrictions that apply to HRA claims in your state. For definitive tax guidance, it is best to seek the advice of experts or to consult official tax resources.
Fill out the required forms
For HRA claims, your company could have a certain form or format you need to use. You can get these through the HR department or, if your company has an intranet, you can download them there. Do not leave any blanks; include all information required.
Provide the supporting documents
Include supporting materials such as rent receipts and copies of the lease agreement along with the filled-out forms. Verify that all of the paperwork you are using is legitimate and easy to read.
Submit the HRA claim
Send the HRA claim form and all necessary documentation to the appropriate office in your company. It is usually the finance or human resources division. If your company has specific guidelines for filing HRA claims, be sure to adhere to them.
Keep copies of the documents
Create duplicates of anything that is submitted for safekeeping. You should always keep a record of your HRA claims and the paperwork that supports them.
Find out where your HRA application stands by contacting the finance or human resources office. Resolve any problems or discrepancies as soon as possible and supply any missing details or explanations.
Claiming HRA while living at parents house
Entering into a rental agreement with your parents where you agree to pay them a specific amount of rent each month is one way to claim HRA while still living at home with them. When filing your personal income taxes, you can use the money as an HRA deduction. However, your parents will have to report the rent you paid on their tax returns.
Taking advantage of home loans and HRA
As long as you are paying the rent, you can take advantage of the tax breaks associated with HRA. However, if your primary residence is rented out and you are living elsewhere, you may be eligible for tax breaks associated with both your house loan and your housing rental agreement (HRA). However, in such a circumstance, you are required to report rental revenue or income from the property so that the government can withhold the appropriate tax.
Getting ready for the actual move
The process of getting ready to move can be difficult, but it can be simplified with careful preparation and organization. For a good start, make a timeline for packing, contacting utilities, and other necessary duties by starting with the date you plan to move out. Separately, you can create a list of the tasks you need to perform. Whether or not you move with the help of a moving company that accept HRA.
Afterward, it is time to take stock of your possessions and do some cleaning up. Donate, sell, or throw away the things you no longer want or need. You can save time and energy and feel more prepared to begin again in your new place of residence. Gather all the necessary packing supplies and start packing before the arrival of movers. When all the work has finally been done, it is important to clean the space around to prepare it for new owners or tenants.
When relocating to a new area, it is important to learn the rules and laws that may apply to you. Get your identification in order by renewing your driver’s license, vehicle registration, and voter registration. Pack up any last-minute items and double-check your labels on a moving day. Make sure to be present while loading so that you can keep an eye on things and give directions if necessary.