HRA

Rohit (Principal Consultant Taxes International)   (27 Points)

28 June 2010  

Can an employee claim HRA for a city which is different from his city of employment.

For eg. Employment is performed in City A but employee wishes to claim HRA for city B.

Above scenario is practically possible as Employee works on Mon to Fri in Mumbai and stays is hotel but has a family and rental house in Delhi where he resides on Weekends and pays HRA. Is it allowed as per Sec 10(13A) and Rule 2A.

Sections and Rules doesnot clealry prohibits it. It only says rent must eb actually paid for premises occupied.