HRA allowance

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This query is : Resolved

Aisha (Querist)

28 February 2008 Is it possible for govt to give HRA allowance even if the employee doesnt stay in a rented house(stays in self occupied property)... and can the employee deduct the same.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

28 February 2008 NO ,NEITHER THE GOVERNMENT CAN GIVE HRA ALLOWANCE TO A PERSON WHO STAYS IN SELF OCCUPIED PROPERTY AND EMPLOYEE CANNOT DEDUCT THE SAME

Aisha

Aisha (Querist)

28 February 2008 but one of my client says tat her college is giving HRA to all his colleagues includin ppl who are ownin a self occupied property.. and wants to claim it??

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)

28 February 2008 yes HRA allaowance can be given as a part of CTC. However, as he is staying in self occupied property, he cannot claim exemption u/s 10(13) rule 2A

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

29 February 2008 There is no bar for the employer to give House Rent Allowance as part of his Salary structure to any employee. However the employee will get deduction in respect thereof only if he meets the criteria given under section 10(13A) read with rule 2A of the Income tax Act and Rules

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