HRA exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 Dear Experts,

I am working in a multinational company & has Salary income of Rs. 4.50lacs p.a. I am paying rent over RS.7000 per month to my Father. House is owned by my Father. I am regularly showing rent income in my Fathers Income tax return. Since my Father is a pensioner & senior citizen his total income including rent does n't cross Rs.2.40lacs p.a.

I had expliained this to my employer (Tax deduction authority) but they denied my HRA claim saying this is not allowed as per I.tax Act.They advice me to claim this deduction through filling ITR only.

I request you to help me in this respect & give me I.Tax section details so that I could convience my employer.

Regard.

P.G. Deochake
Asst.Manager

s v rajesh

s v rajesh (Expert)
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02 March 2011 Hi,

There's no separate rule in IT Act if you pay rent to father to disallow.

While filing IT Return you can claim by showing as Allowance U/s.10(13A) by the below formula which is least of the following.

House Rent Allowance

Out of house rent allowance received during the year, least of the following three amounts will not be included in income: -

1.The amount equal to 50% of annual salary, for persons staying in Mumbai, Chennai, Calcutta or Delhi, but 40%, for others
2.The actual amount of house rent allowance received
3.The amount of rent actually paid in excess of 10% of annual salary

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2011 Thank you very much for the reply given. But still I want to know whether I can claim this HRA deduction & retrain my employer from disallowing it & deduct TDS on the same 0r Can employer will show this deduction (HRA) in my Form 16?

If any more experts can view their comments will be highly appreciated

P.G. Deochake

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Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2011 Dear Experts,

Pl reply to my second querry. I want to discuss this with my employer.

P.G. Deochake

s v rajesh

s v rajesh (Expert)
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07 March 2011 Hi,

You can ask your employer to consider HRA there's no rule in Income Tax Act not to claim nor disallow the rent receipts produced by you.

This HRA must be reflecting in the Form 16

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2011 Thank you so much Mr. Rajesh for this valuable opinion.

P.G. Deochake