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Hra for two cities

Tax planning 454 views 1 replies

Riddhi

Sr. Manager - Finance

81 Points Joined December 2008

Hi,

In the month of July I have joined new company, however due to certain reasons I was partially working for my previous employer from home & at times in the month I visited the other city also for the previous employer's work, so in that one month I got salary from both employers now in that one month I was having accomodation in two cities too & I have paid rent for both the cities houses. I would like to know whether I will elgible to get HRA exemption upon both the HRA received from employers or i will be able to claim HRA exemption only upon either of the two

Replies (1)

CA Deepak Rathore

EXPERT

281 Points Joined December 2010

Yeah , you can as nothing is mention in section 10(13A about this disallowance,

However u can calculate both hra exemption separately(monthly)

then add both ,and get exemption

HRA is exempt under section 10(13A) to the extent of the minimum of the following three amounts

1. Actual House Rent Allowance received by the employee
2. Excees of rent paid for the accommodation occupied by him over 10 % of the salary.
3. 50% of salary where the residential house is situated at Mumbai, Calcutta, Delhi or Chennai and 40% of the salary where the house is situated at any other place.