Hra and rent free accommodation - taxability

This query is : Resolved 

18 January 2016 The company has provided rent free accommodation to one of the employees as he was transferred to another city. His salary structure includes HRA. The rent free accommodation will be taxable as perquisite. My question is can the employee claim HRA benefit as he is paying rent for the house occupied by his family in his home town?

18 January 2016 HRA can be allowed in respect of the residential accommodation occupied by the assessee for the purpose of his employment and he actually pays rent for the same. As per Section 10(13A) he is not entitled for the exemption.

18 January 2016 Employee can't claim 10(13A) benefit ,since the residential accommodation for which rent is being paid is not occupied by the employee.


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