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House Rent Allowance

Anu Agarwal (Manager-Audits) (173 Points)

01 April 2009

HI all,

Could someone tell me,

If rent for furniture is paid as per a separate agreement,will it be considered for HRA????

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2 Replies

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 01 April 2009

Hi Anu,

As per section 10(13) of I T Act 1961any expenditure in relation to residential accomodation is exempted to the extenet specified under rule 2A.

Now, the word residential accomodation is not defined under I T Act or I have not heared any judicial pronouncement on it.

In view of above, it is gud enough to take a risk for allowing exemption on such amount to the extent of amount eligible under rule 2A. If you wanna be conservative you know the answer.

Regards

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Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 02 April 2009

Anu

As you told there is seprate aggrement for paying rent of furniture in that case it is not allowed in Rent but why shoudn't go for the composite aggrement of rent then you will allowed a composite rent.

SORABH