HRA deduction for rents paid in multiple cities

Hi Pankaj,

I have an offer to work in bangalore and I plan to rent an apartment @ 18,000 PM.

I am born and brought up in Mumbai and hence I want to keep one apartment for my dependent parents in Mumbai @ 15,000 PM. I am not willing to go for a home loan and would like to stick to 2 rented accocomodation for the time being.

My question is that can I claim HRA deduction from taxable income for rented accomodation for both the cities since one is occupied by me in bangalore where I am working and another is occupied by my dependent parents in mumbai.

If I can claim deduction for both, should I simply add both the rents and accordingly claim deduction as is the case with single apartment or there are any other rules. Do I need to have both lease agreements on my name or it is fine if Mumbai apartment is leased on my parents name ?

It will really help me since I plan to ask for more HRA in my package in order to claim deductions. Appreciate your expert opinion on this matter.

Thanks & Regards

asked Jul 07 '11 at 20:15 by Tom 1112

You cannot claim HRA exemption for two houses. Officially your employer provide house rent allowance so that you can live near office. It cannot be claimed for house in a different city and not occupied by you.

answered Jul 07 '11 at 22:52 by Pankaj Batra 5.2k320


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Asked: Jul 07 '11 at 20:15

Seen: 4,474 times

Last updated: Jul 07 '11 at 22:52