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Two queries related to hra

SNJAY BOBRA (Proprietor) (25 Points)

05 April 2016

1.One of my client had job in mumbai and he was paying rent to her father. The owner of house is father only.But now his job is at banglore. Can still he continue paying the rent for mumbai flat as his wife and childrens are there only and claim HRA exemption??? 2.Can I claim Hra exemption If l Stay as Paying Guest in Banglore??? please give answer with provisions..

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ashish bista (Student) (55 Points)
Replied 05 April 2016

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.