claim of HRA both husband and wife, Income Tax

[hanamantharao kulkarni]

Dear Sir

I request you to give me suggestions regarding house rent allowance.

1. Is it fully exempted for income tax 

2. can both husband and wife claim exemption if they are in government service

Posts / Replies

[A Wilson]

Dear Sir,

HRA Exemption is available only if you have House Rent Allowance and rental payments.

House Rent Allowance & Rental Payments :

HRA exemption is available subject to the following conditions:

A. For Metro Cities - Delhi, Mumbai, Kolkata, Chennai

Least of the Following will be exempted

1.     50 percent of Basic Salary

2.     Actual HRA Received

3.     Rent Paid minus 10 percent of the Basic Salary

B. For Other Cities – other than Delhi, Mumbai, Kolkata, Chennai

Least of the Following will be exempted

1. 40 percent of Basic Salary
2. Actual HRA Received
3. Rent Paid minus 10 percent of the Basic Salary

And You can claim the HRA Exemption to the extend of the rental payments subject to the conditions stated above. Double claim by you and your spouse will not be allowed. But you both may claim HRA Exemption in proportionate with the rental payments (eg) If the total rental payment is Rs.10000/- p.month, then you may claim 50 percent and your spouse may claim another 50 percent subject to the limit specified above.

Thanks & Regards,

A.Wilson