Hra exemption

Tax queries 740 views 3 replies

Dev

Devolper

37 Points Joined April 2012

In case a person living in a city with his relatives, where he is employed say at Delhi and another at place where his family(Parents and His Wife) are residing say at Punjab & where he visits periodically and pay rent to his parents(as his wife is dependant on him and he is not able to shift his wife with him),As the distance between both cities are more than 250 Kms, whether the rent paid is eligible for calculating HRA exemption. Any case law or circular on this issue.

Replies (3)

Mihir Doshi

B.Com CA CS LLB

2187 Points Joined July 2008

Dev HRA is to be considered for the place where the person actually does his/her job. In your case, assessee pays rent for his wife residing with his parents at another city. So, you wont be eligible to claim HRA exemption.

You can claim HRA exemption for your own accomodation at the job place or in that city.

Thanks

Mihir doshi

CA Syed Raza Abbas Rizvi

PROPRIETOR

631 Points Joined December 2009

Section 10 (13A), any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee.....

words occupied by the assessee makes it clear that in this case one cannot get exemption.

Dev

Devolper

37 Points Joined April 2012

Thanks a lot for this information. I have just one more question...

In case a person occupies two rented accmodations, one at the place where he is employed say at Haridwar and another at place where his family is residing say at Delhi & where he visits periodically (8-10 days), whether the entire rent paid is eligible for calculating HRA exemption.