Regarding HRA exemption

A question regarding house rent exemption:
Before start the question few points is given below-
1. Suppose both husband and wife are working as State government employees.
2. A home loan was taken from SBI in the name of both husband and wife( as combined account).
3. The benefit of HRA is getting only one( whose HRA is higher) as both employees are working and staying in the same station.
4. The interest and principal amount of that home loan is being equally divided at the time filling in computation form at u/s 24(i) and u/s 80 c ( repayment of principal amount of HB Loan) respectively.
5. But, the allowances of exempt is not deducted u/s 10(13A) as they stay their own house and both employees are working in the same station.
7. Now, his wife got transferred into another station and both are getting HRA from Govt as both employees are in different station .
8. She is staying in a rented house in her working place and pay her rented amount on monthly basis.
Now my question is :
Can she get deduction of the allowances of exempt u/s 10(13A) as she is paying the rent in her service station along with equal parts of interest and principal amount that have been already deducted.
Kindly clarify Sir along with conditions ?

Hi Dwijen,

Thanks for the detailed scenario. Let me clarify the HRA exemption and home loan deductions in this case:

Situation Recap:

Both husband and wife are state government employees.
Both have taken a joint home loan for a house where they stayed initially.
Only one (husband) was claiming HRA exemption when both were at the same station.
Home loan interest & principal are split equally between them for deductions u/s 24(b) and 80C.
Now, wife is transferred to a different station, paying rent there, and receiving HRA from her employer.

Can the wife claim HRA exemption u/s 10(13A) now?

Yes, she can claim exemption on HRA under Section 10(13A) if all these conditions are met:

She actually pays rent for accommodation at her new work location (which you mentioned is true).
She is receiving HRA from her employer.
She does not own a residential accommodation at the new work location where she is employed.
- The law requires that if you stay in rented accommodation at the place of work, you can claim HRA exemption.
- Since the joint house is at the old station, and she is transferred, the rented house at the new station qualifies.

About the home loan deductions on the same property:

The principal repayment under Section 80C and interest deduction under Section 24(b) on the joint home loan for the house where they both lived previously is allowed to both husband and wife in equal shares (which you are already doing).
There is no restriction on claiming both:
- HRA exemption for rent paid at the new station, and
- Home loan deductions on the owned house at the old station.
This is because the HRA exemption is linked to rent paid at the current station of employment (wife’s new place), while home loan deductions are related to ownership and loan repayment of the residential property, even if not occupied by the owner.

Important points and conditions:

If wife stays in the rented accommodation at the new station and pays rent, she can claim HRA exemption.
Husband can continue to claim HRA exemption only if he stays in rented accommodation and pays rent.
Both can continue claiming home loan deductions on their respective shares.
Make sure rent payments are genuine and supported by rent receipts.

Summary

Deduction	Eligible Claimant	Condition
HRA exemption u/s 10(13A)	Wife (at new station)	She pays rent at new station and receives HRA
Home Loan Principal u/s 80C	Both (jointly)	Principal repayment on owned house (old station)
Home Loan Interest u/s 24(b)	Both (jointly)	Interest paid on loan for owned house (old station)