HRA DEDUCTION

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2011 Dear
For HRA exemption, if I pay the rent for the house which is not in my working city, could i take the benefit of HRA u/s.10(13).

Thanking You,
Avinash

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 January 2011 in my view no.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 January 2011 You can claim HRA exemption towards the rent paid by you, if:

* You receive HRA as part of your salary
* You pay the rent
* You stay in the rented house for which you pay the rent
* You do not own the house for which you are paying the rent.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 January 2011 Agreed.. You can live in any city & can pay the rent for the same. It can be claimed. But the fact is is that you should be living in that house should be established.

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2011 Dear Mr. Sanat,
Thanks, I am agree with you,
My another question is,

1. If I am working in Nagpur & residing with my brother where i am not paying any rent. but my family (wife+children) resides in Mumbai in rented house. could i claim HRA deduction. if yes then at what rate Metro or non-metro town.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 January 2011 NO YOU CAN'T GET HRA DEDUCTION IN THIS CASE.

Ratan Sharma

Ratan Sharma (Expert)
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20 January 2011 In my opinion yes you can get the deduction. The question is that whether the assessee is paying the rent out of his salary income? Whether he owns any house? In this case certainly he is paying the rent out of his salary income. Therefore deduction should be allowed. No microscoping in the law should be permitted. The individual consist his family for the purpose of getting deduction of HRA. In my opinion deduction should be allowed at Metro Town rate. However if the wife is having income and paying out of her own sources then the case would have been different.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 January 2011 Ratanji,
In support of my view, Please visit the link
http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/sec_010%2813a%29.htm

clarification - 2
point no- 2.

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 January 2011 visit this link also for details.
https://www.caclubindia.com/forum/details.asp?mod_id=122733