Section 10(13A) of Act “any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee”
1) Word “occupied” is not further illuminated here but it is common perception that House rent allowance is given by the Employer so that employee can stay close to the office of employers.
2) They have used the word “Residential Accomodation” and not “Residential Accomodation(s). It seems intention is to exempt rent paid for only one accommodation taken on rent by the employee.
Based on above, I think exemption is available in respect of rent paid for one house only ( City 1 )
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12 March 2013
I think No, HRA can be claimed only for one accommodation that in city of employment.
Accommodation in City 2 is not "occupied" by the assessee.
There is no provision in Income tax for paying house rent for parents, dependents or any other relatives.
Even he is frequently visiting accommodation at City-2 but it can’t be termed as accommodation “occupied” by the assessee, hence, no exemption available for this house.
12 March 2013
Additionally, HRA can be claimed in respect of only one accommodation taken on rent. Even second house is in same city or in a different city.
12 March 2013
I think clause "c" of rule 2A makes things clear where the following is used-
"where such accommodation is" the usage of such and is making it clear that it is for one accomodation only. Also the distinction between metros and non-metros making it distinct that only one would be possible at a time."
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