Can I claim HRA exemption for rent paid for two locations?
An individual can claim an exemption on house rent paid during the financial year. There are certain rules that must be followed to calculate the amount of exemption that can be claimed by you.
Nov 25, 2019, 10.57 AM IST
- I am working in Gurgaon but my parents live in Pune. I am paying rent for both homes. Can I claim exemption U/S 10(13A) for rent paid at both locations?
Archit Gupta, CEO, ClearTax says, "You can claim an exemption under Section 10(13A) only for the accommodation occupied by you at Gurgaon. With respect to the rent paid for your parents, a salaried taxpayer will not be able to claim any exemption or deduction. Consequently, you can claim HRA exemption only for the location where you pay rent for your accommodation."
- My daughter had been working and filing tax returns for the past two years. This year, she left her job to pursue higher studies in Finland. A sum of Rs 2 lakh remains in her SBI account here. It is earning interest and TDS is being deducted by the bank. How should she file her returns, given her NRI status?
Amit Maheshwari Partner, Ashok Maheshwary and Associates replies: As per Section 195 of the Income-tax Act, TDS is deducted on all types of income earned by an NRI in India. To claim a refund of the TDS deducted, your daughter will have to file an income tax return in India up to 31 July after the end of the financial year. Any delay beyond 31 July but before 31 December would attract a fine of Rs 5,000. Any delay beyond 31 December but before 31 March would attract a fine of Rs 10,000. However, no such fine shall be levied if the net taxable income does not exceed the minimum exemption limit of Rs 2.5 lakh. While filing the ITR, she should self-compute her income and the income tax liability as per the slabs applicable and if there is any excess tax deducted, she will get a refund.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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