Student
55 Points
Joined January 2014
HRA is allowances given by employer to employee and same is deductible subject to the condition laid down in section 10(13A) of Income Tax Act,1961. In view of the above, paying rent in Mumbai for wife and children stay are not falls under HRA area.
HRA is allowed on the basis of rent paid. If your client is paying rent to paying guest and have rent paid receipt , he can claim HRA exemption. Rent paid and amount paid to Hotel stay are totally different.