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Query regarding hra

Tax planning 196 views 1 replies

Vikas

47 Points Joined January 2013

Hello Everyone,

I have a query regarding tax benefits on HRA:

I am working in Saharanpur, Uttar Pradesh in a private entity. My salary breakup has HRA component in it.

My Parents are living in meerut city (around 150 km far from my work place) in a rented accommodation and I pay rent for that.

Recently, I submitted original rent receipts of my Meerut address to the finance deptt. of my organization for claiming tax benefits on HRA. But, they refused to give any such benefits. they said, I am not eligible for tax benefits on HRA in such case.

My query is, "am I eligible for the above benefit or not?". if yes, can I have any proof (like IT Deptt. rules etc. regarding HRA) to prove that I am eligible.

I will be very thankful for an early response.

Thanks and Regards,

Replies (1)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Joined June 2009

Mr.Vikas

As per the wordings in Section 10(13A) of Income-tax Act, 1961 HRA is granted to the assessee to meet expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee. Presuming that you are staying with your parents and daily traveling from the place where your parents are living, to your workplace, practically it is not possible to travel 150 KM every day and attend to your duties. Hence the decision of the Finance Department of your organization cannot be said to be wrong.

Best Wishes

SathikondaA