Claim HRA for different city

1
Claim HRA For
Different City
2
Introduction
HRA, or House Rent Allowance, is a sum of money
that businesses offer to their staff members to
cover housing costs. It is a typical part of a
worker's compensation package. However, claiming
HRA while working in another city is a challenge
for many employees. We shall talk about whether
or not HRA can be claimed for a different city
in this article.
3
What do you mean by HRA?
Let's first define HRA before discus ing whether
it may be utilised for a dif erent city. An
employee's wage package may include an HRA that
is granted to cover housing costs. It is made
available to workers who do not receive
ac ommodations from the corporation. Up to a
specific amount, HRA is often computed as a
percentage of the basic pay and is tax-free.
4
HRA and Different City
Let's get to the primary issue at hand Can HRA
be used in a different city? HRA can be claimed
for a different city, that much is true. A
worker cannot, however, claim HRA for a new city
unless certain requirements are met. Condition
1 The employee is living in a rented house
Condition 2 The employee is paying rent for the
rented house.
5
How to HRA Calculated?

• The amount of HRA that can be claimed is
  calculated based on the following three factors
• Basic Salary. Rent Paid.
• City of residence.

6
If an employee lives elsewhere but works
remotely, can they still claim HRA for that city?
HRA cannot be claimed if an employee works
remotely while residing in a separate city. The
reason for this is that the worker does not
reside in the city where the rented home is
situated. The employee must be employed in the
city where the rented home is situated in order
to be eligible for HRA. You need to understand
why submitting a rent agreement is required to
qualify for an HRA exemption.
7
How can I submit an HRA claim for different city?
The employee must provide evidence of rent
payments made for the rented home in the other
city in order to claim HRA for that location.
This can take the form of a rental agreement or
rent receipts. Additionally, the worker must
present documentation of their employment in that
city. This can take the shape of a letter from
the employer or a salary certificate.
8
Thank you!