House Rent Allowance

This query is : Resolved

Alok Kumar Mishra (Querist)
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18 February 2010 I have been recently transferred from Delhi to Thane, I could not take my family with me due to My son studies,Now I am residing in Thane on Rented Flat and My family is living in Delhi also on rented flat, My Query is :

a) Whether I am eligible to claim on HRA for both the rent or only for Delhi or Thane or only for Thane (from the period where I have been shifted)

b) What is HRA claim for Rent in Thane is it 50% or 40% of Basic Salary ?

I am getting HRA per month .

Regards
alok

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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18 February 2010 1) HRA exemption is available to Individual only. Here, you are staying in Thane only therefore exemption will be applicable only for Thane House(from the period where you have been shifted).

2) Here, % will be 40% of (Basic+DA(forming)+Commission)*, because Thane does not fall under Metro cities category given by Income Tax Department.

*Please note: if you are not getting DA & Commission then only 40% will be of Basic Salary.

Regards!!!

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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18 February 2010 Dear Alok

You can claim the HRA exemption only for the house in which you are residing i.e. Thane.

For calculating HRA exemption there are three conditions minimum of which is exempt from tax.

1. HRA received
2. HRA paid less 10% salary
3. 50% or 40% of Salary

Salary means Basic+DA to the extent the terms of empoyment so provide+ Commission if fixed percentage of turnover.

Thane, Mumbai will come under 50%.

Regards

Alok Kumar Mishra

Alok Kumar Mishra (Querist)
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18 February 2010 Thanks a lot to both of you,

Regards
alok