Request advice regarding HRA exemption on salary under the IT Act.
One of our employees is based in Kolkata and is currently renting a house there. Additionally, the employee has another rented property in their hometown, which is located 300 km away from their base location and where they pay higher rent. The employee is seeking HRA exemption under Section 80GG for the rented property in their hometown, even though it is away from their workplace. Are they eligible for this exemption on a property that is frequently visited but not at the base location?
Please provide guidance on whether this exemption is permissible. If not, kindly suggest the relevant section in the IT Act or any other applicable legislation.
Thank you.
Acknowledge(0)
Amend(0)
One of our employees is based in Kolkata and is currently renting a house there. Additionally, the employee has another rented property in their hometown, which is located 300 km away from their base location and where they pay higher rent. The employee is seeking HRA exemption under Section 80GG for the rented property in their hometown, even though it is away from their workplace. Are they eligible for this exemption on a property that is frequently visited but not at the base location?
Please provide guidance on whether this exemption is permissible. If not, kindly suggest the relevant section in the IT Act or any other applicable legislation.
Thank you.
Acknowledge(0)Amend(0)
HRA Exemption for Rented Property Away from Base Location
The eligibility for claiming House Rent Allowance (HRA) exemption under Section 80GG of the Income Tax Act for a property that is not at the base location but frequently visited depends on specific criteria outlined in the legislation. Here are the key points to consider:
1. Eligibility Criteria:
- To claim HRA exemption under Section 80GG, the employee must not receive HRA as part of their salary.
- The employee, their spouse, or minor child should not own any residential accommodation at the place where they are employed, perform duties, or carry on business or profession.
- The employee should not own a self-occupied property in any other location.
- The employee should file a declaration in Form 10BA to claim the exemption.
2. Base Location vs. Visited Property:
- The fact that the rented property in the hometown is frequently visited by the employee does not impact the eligibility for HRA exemption. The key consideration is whether the property is self-occupied or rented out.
3. Permissible Exemption:
- If the employee meets all the eligibility criteria and the rented property in the hometown is not self-occupied, they may be eligible to claim HRA exemption under Section 80GG for the higher rent paid at that location.
4. Consultation:
- It is advisable for the employee to consult with a tax advisor or financial expert to ensure compliance with the specific provisions of the IT Act and maximize the benefits available.
In conclusion, the employee may be eligible for HRA exemption under Section 80GG for the rented property in their hometown, even if it is away from their base location, as long as they meet the prescribed criteria and requirements of the Income Tax Act.
For further details and specific provisions, please refer to the Income Tax Act or consult with a tax professional.
Reference
https://www.incometaxindia.gov.in
From India, Gurugram
Acknowledge(0)Amend(0)
35The eligibility for claiming House Rent Allowance (HRA) exemption under Section 80GG of the Income Tax Act for a property that is not at the base location but frequently visited depends on specific criteria outlined in the legislation. Here are the key points to consider:
1. Eligibility Criteria:
- To claim HRA exemption under Section 80GG, the employee must not receive HRA as part of their salary.
- The employee, their spouse, or minor child should not own any residential accommodation at the place where they are employed, perform duties, or carry on business or profession.
- The employee should not own a self-occupied property in any other location.
- The employee should file a declaration in Form 10BA to claim the exemption.
2. Base Location vs. Visited Property:
- The fact that the rented property in the hometown is frequently visited by the employee does not impact the eligibility for HRA exemption. The key consideration is whether the property is self-occupied or rented out.
3. Permissible Exemption:
- If the employee meets all the eligibility criteria and the rented property in the hometown is not self-occupied, they may be eligible to claim HRA exemption under Section 80GG for the higher rent paid at that location.
4. Consultation:
- It is advisable for the employee to consult with a tax advisor or financial expert to ensure compliance with the specific provisions of the IT Act and maximize the benefits available.
In conclusion, the employee may be eligible for HRA exemption under Section 80GG for the rented property in their hometown, even if it is away from their base location, as long as they meet the prescribed criteria and requirements of the Income Tax Act.
For further details and specific provisions, please refer to the Income Tax Act or consult with a tax professional.
Reference
https://www.incometaxindia.gov.in
From India, Gurugram
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
A.P. Shops and Establishments Act, 1988 exemption of renewal.pdf
Note on HRA & LTA Exemption.doc