02 April 2009
Dear members I have some queries that i need to clear to have better understanding and saving tax.
1. ) if the rent agreement is between the husband and landlord, and rent is paid by cheque by wife on her name to land lord, then in this case wife can avail hra exemption or not from her taxable income as she is working in private sector or vice versa? if yes, then what are the document she has to submitt to a/c department?
2. )shall we need to mentioned both husband and wife name in the agreement, so that any one from us can claim full HRA and what doucments we need to give in this.
3. ) shall we need to mentioned both husband and wife name in the agreementas the rent is 12K, where in we received HRA as 5 k and 6 k, can we both share hra claim seperately in our respective organisation and what documents we need to give in this
hope i will get positive answer, this is to plan future tax benefit so that we should not pay high tax to IT Dept.
02 April 2009
The best option is to make rent agreement in the names of both husband and wife, and pay the equal rent by cheque to claim HRA for both. In your first case, if the rent agreement is in name of husband, and payment made by wife, then it will be treated as loan to husband by wife, and no exemption shall be available to her. Only husband would be able to claim. Better is to make a fresh rent agreement in joint names, and pay saperately
so there will be two agreement or one agreement in both name will do, and we make payment of rent in one cheque and ask for two receipt or pay rent in two cheques ( mine and my wife dividing rent) and take two receipts.
03 April 2009
One agreement will serve the purpose. You shall need to take two rent reciepts for share of each. Try to pay by saperate cheques, because employers of both of you will demand saperate reciepts in the name of payer. This is a practical case. SO its better to make arrangements as practical as maximum can be.
thanks for your reply and support, please let me know one more thing this is last question, what if we have a joint account and we are paying rent from that joint account, and ask landlord to give us 2 receipts...
thanks for your reply and support, please let me know one more thing this is last question, what if we have a joint account and we are paying rent from that joint account, and ask landlord to give us 2 receipts...
04 April 2009
Generally, joint account is treated mainly of the person whose name is appearing first in the name on bank records. So try to avoid this thing. Go for separate account and separate recipts. You can have joint rent agreement. That shall not be an issue. Your employers will be satisfied with the rent reciepts in separate names.
CAclubindia
