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Hra exemption if rented in diff.places

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indudhar (Querist)
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11 February 2012 1)If assessee an Govt. employee works in hubli and his family lives in Davangere, both he & his family lives in rented accommodation at respective places, so while claiming HRA exemption can he eligible claiming exemption for rent paid in both places.
2)If assessee an Govt.employee he will be paid an HRA on basic pay only, whereas HRA Exemption calculating 10% of basic salary taking considering in that basic salary(Basic+DP+DA)or HRA paid from employeer OR Rent paid by assessee which were is less will allowable as per I.T.Act. Is there any provisions under I.T.act HRA calculation 10% on basic pay only. pl.clarify in this regard provisions

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 February 2012 1. Under HRA exemption, employee can claim only rent paid for the house which he stays

2.House rent allowance exemption calculation

(1) HRA received
(2) Rent paid Less 10% of salary
(3) 40% of salary, (50% in case of Mumbai, Chennai, Kolkata
& Delhi). Salary includes bonus + Dearness allowance,
where provided by terms of employment.

Which ever is less

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