Salaried person receiving HRA having self occupied propety

saju sathyadevan (Querist) 13 December 2010 This query is : Resolved
Sir,

If a salaried person is having self occupied property,which is vacant, at a place far away from his work place and he is living with his family in rental house near to his workplace paying rent, then if he is receiving House Rent Allowance how is it to be treated for calculating taxable income.

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H.M.Patnaik (Expert) 13 December 2010
While calculating the Taxable Income of the above person , "Income from salary" is to be computed allowing exemption towards HRA as per Sec.10(13A) read with Rule-2A of of Income Tax Rules and 'Income from House Property" in respect of the Self-occupied property is to be treated as Nil as per Section23(2)(a) of the Income Tax Act.