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To claim HRA deduction, one should be paying rent

AN Shanbhag, Sandeep Shanbhag
Posted: Sunday, Aug 10, 2008 at 0219 hrs IST
Updated: Sunday, Aug 10, 2008 at 0219 hrs IST

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: (or to be precise a PIO - Person of Indian Origin). Even after obtaining your new nationality and passport, your rights, privileges and obligations vis-à-vis India remain the same. So, yes, you need to convert all your bank accounts that you had as an Indian resident to NRO. Any fresh accounts that you may open using foreign currency will be NRE. The money in the NRO accounts is not repatriable, whereas that in the NRE account is fully repatriable. The interest on an NRO term deposit is similar to what an Indian resident earns on his rupee deposit (currently in the region of 8.5% to 10% pa taxable). The NRE interest while being tax-free is capped at LIBOR rates.

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» HRA Deduction

Posted by Vivek on 2008-12-16 09:53:30.099004+05:30
i am residing at shimla as my office is situated there and my family is residing at noida, Can i claim House rent payment for Noida house from my HRA

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» HRA claim

Posted by Vishal Parmar on 2008-11-21 11:23:07.542965+05:30
Can i claim HRA benefit if i pay rent to my mother (not dependant) and is the registration of such rent agreement necesarry.

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