Can You Claim HRA Exemption Without Staying In Rented House?

Since , you have taken a house in a city different than your working city, evidence has to be produced that your family are staying there and why you are compelled to take the house elsewhere. The A.O has to satisfy himself regarding the truth in your statement. In my opinion, if your case falls under scrutiny , then you will have difficulty convincing ITOs your case . however, CIT(A) will give you relief if he is convinced.

For your ready refernce the provison of Section 10(13A) and Rule 2A is given below:

“13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on `payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations”

Rule 2A also have Explanation in point (ii) which states

“In this rule(ii) relevant period means the period during which the said accommodation was occupied by the assessee during the previous year.”