Hra

This query is : Resolved 

28 February 2013 whether HRA is exempted in case of rent paid to spouse?
If no,then in what section?

28 February 2013 Hi Neha,

The relationship between a husband and wife is not commercial in nature and therefore the rent paid to spouse is not considered by the income tax authorities. On the other hand, rent paid to the parents is eligible for exemption. If you stay with your parents and pay rent to them then you can claim for tax deductions.

However you need to keep all your rent receipts since it is the only proof that you are paying rent. HRA exemptions are only available on submission of rent receipts or the rent agreement.

Thanks!!

28 February 2013 agree with Vaibhav
and your wife must show that income in her return if she file return, so that there will be no problem


01 March 2013 sir,
i have asked that if exemption not provided...then in what section?
or quote any case law under which it is disallowed.

01 March 2013 actually husband wife don't have commerical transactions.

you can do it, wife can issue rent receipt and show income in her return as house property income. husband can show that in his return with PAN of wife to make it strong evidence.
BUT
if ITO will check then he can reject it, because it is avoidance of tax. husband and wife live in one home then how can she can get rent from husband.



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