CLAIMING OF HRA EXEMPTION WITH COMPANY LEASED ACCOMMOD.

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This query is : Resolved

HEMENDRA KUMAR VARSHNEY (Querist)
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21 October 2008 There is a query on Income Tax.

The employee is provided with a company leased accommodation in the city of employment and at the same time his family is staying in a rented accommodation different city in the same State / different State. He is owning a house which is vacant and the loan installments are being paid. Prior to shifting he was staying in that home.

1) Can he claim the HRA even if he is provided with the leased accommodation?

2) Can he claim the interest on housing loan as a deduction even when he is having a company lease house and the rented accommodation in a different city?

An early response by the experts will be highly appreciated.
Please mark a reply to my ID varshney_office@yahoo.com

Thanks.

Hemendra

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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21 October 2008 1)No.
2)yes.

HEMENDRA KUMAR VARSHNEY

HEMENDRA KUMAR VARSHNEY (Querist)
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21 October 2008 Hi, Srinivas,
Please elaborate in details. My submission is that both can be there.
CLA is perquisite and HRA is an allowance.
An employer can give both. And if the employer has provided the CLA then the perk value will be added to the income and at the same time he can claim HRA if the family is staying somewherelse owing to education of kids or locational facilties and he stays with them on the week ends.

Please clarify.

Thanks.

Hemendra

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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21 October 2008 HRA is applicable only if the assessee is in occupation as per sectio 10(13A).

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