HRA exemption

[RamKumar Lakkoju]

Dear All,

An employee who has been allotted accommodation but staying alone; is paying rent for a house which is located 100 kms from company accommodation for better education of his children. In that rented house his spouse and children are staying.

Can he claim HRA exemption for that rented house, Provided he is receiving HRA from company?

[DR.MARIAPPAN GOVINDARAJAN]

In my view, no.

AI Summary

HRA exemption not available where employee has employer provided accommodation but rents residence for family. HRA exemption is considered where an employee allotted employer-provided accommodation lives separately and pays rent for a residence occupied by spouse and children; the respondent's view is that HRA exemption is not available for that rented house while employer accommodation has been allotted and the employee receives HRA.