I am a central Government Employee working as a Group B officer. Even though I am native of Hyderabad. I am posted to a district other than Hyderabad. I am drawing a basic salary of about 17000/- . HRA is drawn at the rate of 10 percent beacuse I am working in a class 'C' city. Hyderabad is a Metro where HRA is drawn at the rate of 30 percent. Because of working in class C city I am loosing HRA of 20 percent. There is a house property situated which is registered in my father's name. My father expired during 1998. Now I require to mortgage the property in bank to obtain loan for the purpose of my son's higher studies. In case if I get the house transferred in my name, I have to show to my department the owner ship of the house. I am the legal heir of my father and my mother is willing to release her share in my favour. I am worried about the treatment of HRA for the purpose of Income tax. I am paying rent in the district where I am working as I have taken a house there on rent. However I may rent out the present accomodation in Hyderabad and will stay in a rented house I donot stay at my work place permanantly as I visit my native place frequently moreover after two years I will get transferred to Hyderabad. I want to know about the drawl of HRA whether it will be effected on account of my being owner of a house in Hyderabad while working away from my native and also when I get transferred to Hyderabad. Also I want to knwo about the treatment of HRA for the purpose of Income tax in both the situations. In case if I am loosing any benefit on account of my being the owner of the house then what is the proceedure to avoid the loss and what are the techniques I should adopt.
