Hra exemption

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sanjay (Querist)
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22 March 2012 Hai
I am sanjay. I have one point in my mind in regards to HRA exemption. Can Husband and wife take exemption of HRA if both are receiving it but Husband is giving rent? If yes what are the conditions.
Kindly advise. It is urgent.
Regards
Sanjay

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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22 March 2012 If no rent paid HRA exemption not avail eventhough HRA received from the employer. First i think you know how to calculate HRA exemption. Lower of the Following three HRA exemption available.
1) Actual HRA Received
2) Excess rent paid over 10% of the PAY+DA
3) 40% of the Gross Salary(50% for delhi,chennai,kolkatta and Bangalore)

If no paid the second condition of the above becomes negative figure so lower of the above is condition 2 which is negative so HRA exemption 0(ZERO).

In your case you are paying rent and your spouse(wife) not paying rent so in her hands rent payment is ZERO so above explained condition attracts and HRA exemption not available.
In word Husband and wife both are living at the same house and only one paying the rent in their hands then other should not avail the HRA exemption. So in your case your wife not avail the HRA exemption.
But in practice many of them claiming HRA exemption for both husband and wife if both are employees eventhough they both are staying at one house. it is againest to the Act.
OM SAI SRI SAI JAI JAI SAI

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