08 February 2011
An employee residing and working in Ahmedabad is receiving HRA from the employer company.He is claiming exemption of HRA by producing rent receipts as his family is residing in Jodhpur and is paying rent at Jodhpur.
Kindly advice whether he is eligible for exemption as -
1. He has not his own house in Ahmedabad 2. He is living at relative house in Ahmedabad and is not paying any amount.
08 February 2011
Shri Chetan Soni is correct. It does not matter whether he is having his own house in Ahmedabad. Even if he has a haouse in Maninagar and his place of work is at Narayanpura, he may take a house on rental basis in Narayanpura and claim HRA.
The essential condition is the rent must be paid towards accomodation kept on rental basis due to the employment.
Ask him whether he is paying any rent to the relative with whom he is staying.