Dear Sir/Madam,
Can u please short out my this query, a resident of india is in a job for approx 2 month in UK & getting salary & HRA for the FY 2012-13, can rent paid by him for this period in foreign during his employment in UK liable for HRA Exemption india at the time of calculation of taxation income in india. (Salary recd in UK treated as Indian salary & charged tax as per indian tax laws).
Thanks & regards,
CA Vikas Aggarwal
HRA exemption: whether rent paid abroad during foreign service qualifies for Indian tax relief on salary. Resident Indian employed abroad asked whether rent paid overseas during foreign employment qualifies for House Rent Allowance exemption when that foreign salary and HRA are taxed under Indian law; a respondent stated the HRA provision makes no distinction between rent paid domestically or abroad, while the matter may draw tax-department scrutiny. (AI Summary)