22 April 2023
Sir, Rent paid is tax free under HRA. only the clarity required is related to rent paid for family accomodation from HUF is tax free ? please elaborate
22 April 2023
None of the expenditures except that u/s. 80D, 80DD, 80DDB & 80G are exempted for HUF. Investment made as per sec. 80C can be claimed under IT act.
23 April 2023
https://incometaxmanagement.com/Pages/HUF/27-Drawings-Expenses-of-HUF.html#:~:text=Expenses%20on%20rent,Expenses%20on%20Electricity%20bill
23 April 2023
The article states that the HUF can EXPEND these many expenditures for any member/s of its family, from the corpus fund of HUF, but it doesn't mean they are tax exempt to HUF or it reduce any tax liability of HUF. For example HUF can pay house rent for any member of its family, but it cannot claim HRA. HRA is tax exempt to individual earning salary income, which an HUF cannot earn. So, the amount gets reduced from its corpus. On the contrary, the article specified that the expenditure incurred by HUF is not taxable income in the hands of its member/s. So, the member can enjoy it as tax free gift, but cannot claim its exemption against taxable income.
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