house rent allowance

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This query is : Resolved

sanjay more (Querist)

12 February 2009 Sir, I have provided accomodation by employer and my spouse is also working with same employer. I am not getting HRA alloweance because accomodation registered on my name just i want know wether my spouse is applicable for HRA or not. Now she is getting benifit of HRA but auditor pointed out she should not get but no body having documentry proof to confirm of applicability of HRA. Please advice me in this matter.

Thanking you

K V Subba Rao

K V Subba Rao (Expert)

12 February 2009 It appears as though your Query relates to eligibility of your spouse working with same Company for drawal of HRA from the Company. This depends on policy and practice being followed by employer and has nothing to do with Income Tax Act. However,in a PSU I worked till retirement, the policy was to not pay HRA to one if one's spouse is alloted with a departmental quarter.

Coming to Income Tax aspect, in case your spouse gets HRA, I am afraid, the entire amount of HRA is includible in her GTI and no part of it can be claimed as exemption since primary condition of paying rent is not fulfilled

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