Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

HRA

Others 674 views 11 replies

Rohit

Principal Consultant Taxes Internationa

27 Points Posted on 28 June 2010

Can an employee claim HRA for a city which is different from his city of employment.

For eg. Employment is performed in City A but employee wishes to claim HRA for city B.

Above scenario is practically possible as Employee works on Mon to Fri in Mumbai and stays is hotel but has a family and rental house in Delhi where he resides on Weekends and pays HRA. Is it allowed as per Sec 10(13A) and Rule 2A.

Sections and Rules doesnot clealry prohibits it. It only says rent must eb actually paid for premises occupied.

Replies (11)

SIVASIVA

FCA Future CA

4935 Points Posted on 28 June 2010

my opinion

Shudhanshu Agrawal

Business

2570 Points Posted on 28 June 2010

Here you need to refer Section 10(13A) properly.

As per Section 10(13A) HRA exemption will be allowed when two conditions are satisfied:

1- Assessee is not the owner of the property and

2- he is actually paying the rent for it.

In the section no where is mentioned that rent should be paid for the property which is in the same city in which the office of the employee is located.

Hence HRA exemption can be allowed.

bhagyalakshmi

learner

141 Points Posted on 28 June 2010

Yes Shudhanshu Agarwal is Correct.

HRA can b Claimed

Ravichandra

PCC

35 Points Posted on 28 June 2010

As per Section 10(13A) HRA exemption can be claimed rohit

Guest

Originally posted by : Shudhanshu Agrawal
	Here you need to refer Section 10(13A) properly. As per Section 10(13A) HRA exemption will be allowed when two conditions are satisfied: 1- Assessee is not the owner of the property and 2- he is actually paying the rent for it. In the section no where is mentioned that rent should be paid for the property which is in the same city in which the office of the employee is located. Hence HRA exemption can be allowed.