Exemption of HRA

This query is : Resolved

Girish Sharma (Querist)
Follow

25 January 2010 One of my client is a salaried employee getting HRA. His place of business and place of residence is same. He also have a commercial property which has been rented out as shops.
The residence is in the name of his father.

Can he claim HRA exemption u/s 10(13A),and show the rental income from shop under Income from House Property.

Will he be entitled to 30% statutory deduction from the rental income.

Please advice.

Bimal Thacker

Bimal Thacker (Expert)
Follow

26 January 2010 1) He can claim HRA exemption provided he is actually paying rent to his father.
2) rental income from shop is chargable under the head income from house property and he will be entitled to 30% statutory deduction from rental income.