Can Transferred Employees Claim HRA Exemption for Two Locations? Understanding Tax Rules

Dear All,

We have one query regarding the house rent exemption for employees who transfer from one place to another or newly join the organization.

If an employee transfers, can they avail HRA exemption for both places - (A) for their family rent payment at the earlier posting place, and (B) for rent payment at the present place?

What are the rules as per the Income Tax Act to receive rent exemption for both places?

Thank you.

Hi Rakesh,

HRA can be claimed from both employers only for the duration and places that the employee used. He/she cannot claim HRA for parents' rent. The new company will consider HRA from the month of joining.