Clarification on HRA Eligibility with when having 2 houses in same work city (owned and rented)
I am seeking your expert advice on a specific situation related to House Rent Allowance (HRA) and would appreciate your guidance. My employer is giving me HRA allowance.
Here's my situation:
I own a house in the same city where I am employed in Gurgaon, and my family resides there full-time.
Simultaneously, I have taken a house for rent near by and using it for my office work and staying sometime as my current owned house is small.. so a rented accommodation is nearby within the same city.
I pay rent regularly for the rented house, and I have proper documentation, including rent receipts.
The owner of the rented house is also declaring the rent in her tax filings, and the rent transactions are appropriately documented.
Given this scenario, I am seeking clarity on whether I am eligible to claim HRA. The rented accommodation is where I primarily reside, and both properties are situated in the same city.
Your insights on navigating this situation within the framework of tax regulations would be highly appreciated.
Thank you for your time and expertise.