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Hra eligibility

Arjun Hariharan (Asst. Manager) (181 Points)

27 February 2013

Mr. S is working in delhi. He is getting HRA from his employer and his family is residing in Bangalore in rented accomodation. Can he claim the rent paid in Bangalore for the purpose of HRA deduction? Ignore the amount he has paid for his own accomodation in delhi. Please explain alongwith case laws, if any

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2 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 28 February 2013

Yes he claim the exemption for HRA even if the place of business is delhi & rent paid is for bangalore premises. the only requrieemtn is that the assessee shud incure the expenditure towards rent and produce the rent receipts.

Santosh Mishra (AM) (1135 Points)
Replied 07 March 2013

No, it is not possible.

"Under Section 10(13A) of Act any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed."

It is clearly specified “residential accommodation Occupied by the assessee” how can the person occupy the rented property in Bangalore if he is staying in a different city.