diversion of income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2010 iam vamsi from x company.my salary is 200000.80c payments are nearly 20000.remaining 180000.i have to pay tax on 180000.i dont avail any HRA exemption because iam staying in my own house in the name of my wife.can i pay rent to my wife and my wife has no other oncome.can i avail HRA exemption. if i avail, my salary income goes down to 150000 and iam not in the incometax slab.please suggest me if my assumption is correct??? if i do like this can asessing officer accept this type??? please send the supporting case laws

CA.Mini

CA.Mini (Expert)
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10 July 2010 Exemption is not available to an assessee who lives in his own house or in a house for which he does not pay any rent .rent paid to wife arranging rent receipts seems to tax evasion hence i would not be suggesting this.

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2010 i want to quit tax payment.so can i show payment of rent,which is staying in the house in the name of my wife. i had a rent receipts also.

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CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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12 July 2010 Yes, u/s 10(13A) you can claim exemption for HRA if you paid rent to your wife. However, that amount will be income of your wife and as you mentioned that your wife does not have any other income so that amount will not be taxable in her hands.

It is given u/s 80GG that deduction of 80GG cannot be claim if assessee or his spouse having own house.

But nothing given like this u/s 10(13A), therefore you can cliam exemption for HRA.
But get prepared Rent Receipts for the same.

Regards!!!

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