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Query on sec. 40 A (3) - Please Help

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Querist : Anonymous (Querist)
20 June 2011 If a tenant (individual) pays a monthly rent of Rs. 35,000 to his landlord (an individual), and then claims this rent for HRA deduction u/s 10 (13A).

(A) Whether the rent paid will be disallowed for HRA exemption as this is paid in cash and not cheque/DD etc. ? - refer Sec 40 A(3)

Please Help.

Thanks.

20 June 2011 No,
Applicability of Section 40 A(3) is restricted to Income under the head business / prof.

20 June 2011 YES....APPLICABILITY OF SEC 40(A)(3) is for the limited purpose of compututation of profit & gain from Business & Profession.

Regards




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