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HRA Claim

Amala (CA Job) (13 Points)

10 May 2007

Dear friends,

An employee owns a residential property in Mumbai. He takes up his employment in chennai. The property in Mumbai is occupied by his family members. He pays rent for his accomodation in Chennai.

Will he be eligible for HRA?

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3 Replies

Narasimha Rao (53 Points)
Replied 10 May 2007

Assuming you are paying rent for both these premises at Bombay and Chennai, you could claim the HRA benefit for either of the houses.

However, the primary criterion to be considered in your case is whether your company will accept the Chennai address for providing the HRA benefit.

The three main criteria that need to be satisfied in availing HRA are:
- The employee should be staying in a rented premise.
- The employee should be paying the rent.
- The house should not be owned by the employee.

If these conditions are satisfied, HRA benefit is available to the individual.

Best Regards
Narasimha Rao

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Rajesh Itty Eapen (111 Points)
Replied 10 May 2007

hi friends,

here the assessee has taken up his job in chennai and he is paying rent for it. then he CAN claim HRA. there's no need to know where his native is, or whether it is occupied by his family or not.

if the assessee is not paying rent, then he cannot claim HRA allowance. (there r even cases where the assessee pays rent to his family members, to claim the deduction.)

here the main thing to be noted is that, the assessee needs to pay rent at the place where he is workin......

regards,
rajesh itty eapen