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Hra exemption

Vijoy V George (Finance Manager) (45 Points)

18 January 2018

As an employer can I accept receipt of Hostel fees paid by employees and consider it for exemption of HRA. Can anyone please specify the relevant sections of it

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Jaishree Taori (12 Points)
Replied 19 January 2018

As per sec 10(13A) of income tax act,HRA will be available up to the minimum of the following three options:
1.Actual HRA received from employer
2.Actual house rent paid by employee minus 10% of basic salary
3.50% of basic salary if employee live in metro city or 40% of basic salary if employee live in non metro city.
And employee can claim exemption of HRA if he stays in rented house & is in receipt of HRA from his employer.
So, as per above applicable sec you cannot claim exemption of HRA.

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