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HRA exemption

abhinav saxena (CENTRAL TAX INSPECTOR) (113 Points)

11 January 2019

I am paying rent for two cities in different states. One for dependent and another for self. No rent agreement dependent's side but I have rent agreement. Will I get exemption for both? Rent is 6000+7500...I transfer the rent through IMPS ans have bank statement for that.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161002 Points)
Replied 11 January 2019

Going throughout the section 10(13A) of Income Tax Act, 1961, it is ample clear that deduction can only be claimed for the rent paid in the city of employment which you usually occupy for weekdays. So, only 6000/- can be claimed in this case.

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विनोद कुमार शास्त्री (2 Points)
Replied 11 January 2019

क्या मैडिकल सुविधाओं पर खर्चों का बिल पेश करना आवश्यक है क्योंकि वर्ष भर में बीस हजार रुपए के लगभग तो बिना क्लेम के खर्च हो जाते हैं

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161002 Points)
Replied 11 January 2019

Not needed now.

As per an amendment in the Budget 2018, tax exemption on medical reimbursement amounting to INR 15,000 (and transport allowance amounting to INR 19,200) in a financial year have been replaced with a standard deduction of INR 40,000.

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