A client is currently working in Bangalore where he is paying rent for accomodation. He has availed HRA Exemption. However he also claimed a House Property in Chennai as self occupied where his family stays. The AO is of the opinion that since the assessee owns a self occupied property he cannot claim HRA on another property. Is it right? Cant the assessee avail both the benefits because of the fact that he is permanently residing in Bangalore which necessitates payment of rent in Bangalore though he has a property in Chennai ?
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HRA QUERY
Replies (3)
As per my interpretation of Act, exemption for HRA is allowed only is it is actually paid and lower of follows.
1. Actual amount received.
2. 40% or 50%(in case of Metro) of Salary
3. Actual Rent Paid-10% Salary.
Here, there is no condition attached as to ownership of house. Act does not expressly provide that if person holds house property, he will not be given exemption. So you are able to get exemption of HRA.
HRA Exemption is covered under Section 10(13A)
There are two conditions attached to such exemption
1. The house in which he has stayed is not in OWN house (in this case, it is not so)
2. He has actually paid the rent.
If these conditions are satisfied, then HRA exemption is available. Hence AO's case is wrong as he cannot deny an exemption for a reason which has not deliberated under the Act. Hence you CAN Claim exemption
Shiva
| Originally posted by :Vijha | ||
| " | A client is currently working in Bangalore where he is paying rent for accomodation. He has availed HRA Exemption. However he also claimed a House Property in Chennai as self occupied where his family stays. The AO is of the opinion that since the assessee owns a self occupied property he cannot claim HRA on another property. Is it right? Cant the assessee avail both the benefits because of the fact that he is permanently residing in Bangalore which necessitates payment of rent in Bangalore though he has a property in Chennai ? | " |
when a person pay rent for the accomdation then he is liable to get the exemption under HRA . because he is in banglore and he have no own house.and also he cant avail the both the benefits of exemption and HRA of another property.
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