Hra

This query is : Resolved

CA Dipesh Bhupta (Querist)
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15 December 2011 Hi

I am currently working in pune & have rented house which amounts to Rs.2700 but on every weekends I visits my home in mumbai. I too have rented house in Mumbai where my parents reside & monthly rent of that house is Rs.8500. I have doubt in my mind whether I can Claim HRA for both the house or only pune or only mumbai house.

thanks in advance

CA Navin Jain

CA Navin Jain (Expert)
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15 December 2011 only for the pune hose where r u doing job

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CA Dipesh Bhupta

CA Dipesh Bhupta (Querist)
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15 December 2011 is there any provision in Income tax acr or rule which restrict the allowance for two houses? if yes please can u send me the bare text of that provsion @ dipeshbhupta@gmail.com

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@VaibhavJ

@VaibhavJ (Expert)
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15 December 2011 Dear Dipesh,

For claiming HRA deduction two conditions is to be satisfied

1) Person is not living in his own house &
2) Person is not paying Rent for house in which he is living.

So NO HRA can be claimed if he house is owned by him for which HRA is claimed & he is living in house for which he is not paying any rent.

So indirectly it is clear that person should be LIVING in that house for which HRA is claimed.

PS: I have used word living instead of staying since it is intended by law.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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15 December 2011 @Mr. Vaibhav no one can understand your reply i think so it may be that i wrong but your reply only you can understand.

@Mr.Navin how can you say it only for pune house?
As much as i can understand he can claim Mumbai house also if he is paying rent for mumbai house and agreement is in his name.
i am not sure that he can claim both house rent or only one but i am sure he can claim mumbai house also. No where it is written that house should be in that house where he is doing job.
Many of my friends doing job in mumbai and living in navi mumbai and claiming the HRA

In this case i am not very sure but i think he can claim both house rent. As HRA and Home loan both can claim in some cases.

Abhishek Ranjan Singh
ARS Solutions
email2ars@gmail.com
+91 9022838615

Amit

Amit (Expert)
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18 January 2012 As per Income Tax, HRA can be claimed if following conditions are satisfied :

•An HRA allowance is received as part of the salary package.
•If one is staying in a rented accommodation and paying rent for it.
•The rent exceeds 10% of the salary

Since you are working in Pune it is practically impossible that you are staying in Mumbai.

Hence HRA can be claimed only for Pune House.