HRA EXEMPTION

This query is : Resolved

CA Sanjay Baheti (Querist)
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06 June 2011 An Individual being a salaried person is getting HRA @ Rs 12500/- per month from Employer. He is living with his Mother. The residential property is in the name of his Mother who is aged Lady i.e. more than 80 years.Can he claim HRA Exemption based on Rent receipt @ Rs.7000/- p.m. issued by his Mother on monthly basis as per I.T. Act or rules made there under. His basic Salary is Rs. 25000/- p.m.

Please clarify.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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06 June 2011 Yes. Rent paid by a salaried person to his mother qualifies for consideration as rent paid subject however to condition that mother includes the rent in her Total Income from IT purpose. To be on safe side, better deposit the rent in her SB Account every month and later withdraw as per family understanding