House rent paid by employer(bank)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2013 My client is an bank employee in Mumbai.
He has been residing at a flat provided by
his employer.i.e.Bank.The bank has been deducting Rs.80,000/- towards rent for accomodation from his salary.Again Rs.7,50,337/ is added to his gross salary as value of perquisites u/s.17(2)
My question is can he claim HRA Deduction in this case.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2013 No.you cannot claim HRA, since staying rent free accommodation. while calculating the value of accommodation itself the deduction made by your employer for rent need to be adjusted