House rent allowance
This query is : Resolved
12 May 2016
Dear Friends,
Please share your views on the following query.
A is an employee of a pvt. firm in Delhi. he has own house in Delhi which is very small and not in sufficient to his requirement and location hence, given on rent and he is declaring the income of house in his ITR.
His wife also owns a house in Delhi where they are living. A pays monthly rent to his wife, who files ITR disclosing house property income.
Is the above arrangement legally valid.Please share your thoughts.
Thanks
P.C. Joshi
Please share your views on the following query.
A is an employee of a pvt. firm in Delhi. he has own house in Delhi which is very small and not in sufficient to his requirement and location hence, given on rent and he is declaring the income of house in his ITR.
His wife also owns a house in Delhi where they are living. A pays monthly rent to his wife, who files ITR disclosing house property income.
Is the above arrangement legally valid.Please share your thoughts.
Thanks
P.C. Joshi
12 May 2016
HRA will be claim by a person who has not any self occupied house property whether small or big in near by area of your company. If you and your wife are showing HP income in your ITR which is right. but for your HRA deduction in my view you can't claim deduction as per 10 (13A).
12 May 2016
In my view if you don't have house property and if you stay in your wife property then only you can claim HRA deduction.
12 May 2016
You can claim the same, no issues. Paying rent to wife is tenable at law.
12 May 2016
But Sec. 10(13A) or Rule 2A nowhere puts this condition that the employee should not own any house in his place of working. It says exemption is denied where an employee lives in his own house, or in a house for which he does not pay rent.
12 May 2016
Absolutely correct P C Joshi......that is why i said....you can claim the same.....your claim is tenable
12 May 2016
Right Joshi Sir, It was the only reason why I have not said about taking exemption of HRA.
12 May 2016
Thank you all for your valued inputs. Shall welcome more views.
12 May 2016
you are most welcome
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