Aditya Maheshwari (CA in Practice) (35867 Points)
10 June 2009Dear All,
Can my brother pay rent to someone of say Rs. 20,000/- p. m. and claim HRA on the entire amount and pay i my brother rent of Rs. 10,000/- p. m. and also claim HRA. It will not be taxable in the hands of my brother as it would be subletting and income would be less then expenses and both are paying rent to someone.
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 10 June 2009
frankly speaking there is no such problem if your brother having lease agreement with clause of sub-let the property.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 10 June 2009
This means that my brother can claim HRA on rent paid of Rs. 20,000/- and i claim HRA on rent paid to my brother of Rs. 10,000/- if there is a clause on subletting in the lease agreement or if there is no lease agreement at all as my & my brothers company do not insist for lease agreements for payments below 20000/- p. m. and rent receipt would suffice.
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 11 June 2009
thats gr8 that ur brother's copany want only rent receipt.
but for safer side. ask ur brother to make a lease deed with this subletting clause. there is no harm to keep this with u for future if required.
CAclubindia
