Exemption of HRA Claim

[Lav Prajapati]

I would like to seek clarification on following issue

1. whether the location of the rented accommodation is mandatory to be in the same city as the company location for the purpose of HRA claim.

2. For claim exemption of HRA, we can pay rent our parent.

AI Summary

HRA Exemption: Rent Accommodation Should Match Job City; Pay to Parents Allowed with Proof, Not Spouse. A discussion on the exemption of House Rent Allowance (HRA) clarified that the rented accommodation should ideally be in the same city as the job location to claim HRA exemption. Rent can be paid to parents if a formal lease agreement exists, and regular monthly payments are made, with evidence such as bank transfers and receipts. References to specific tax rules and cases were mentioned to support these claims, emphasizing that rent paid to a spouse does not qualify for exemption. Participants requested further references for these guidelines.