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HRA Claim U/s10(13A)

S.Jeyendran (Student of CA Final Course) (207 Points)

10 January 2008

Dear Friends,

Kindly advise whether rent agreement with the land lord is required (In Addition to receipts for the payament made) for claiming deduction u/s.10(13A) of Income Tax Act,1961? Did Sec.10(13A) or Rule 2A stipulates rent agreement as mandatory? I don't think so. Please suggest.

Regards

S.Jeyendran

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32 Replies

(Guest)

As far as employer is concerned, thet do not require any agreement but only Rent recipet is required for claiming HRA U/s 10(13A). However, as a legal precaution, he should have a valid rent agreement

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(Guest)

Rent Agreement is not required for claiming HRA deduction U/s10(13A). We have to produce money receipt for Hire received by land lard Original with due signature.

Prashanth (Accountant) (80 Points)
Replied 11 January 2008

Dear Sir i have query on HRA exemption for incometax calculation. i have paid salary for an employee for whole financial year out of which one month he was on Loss of pay(LOP) because of some other reason. Here when we calculate his HRA exemption on annual basis his Basic : 99000(9000*11) Actual HRA :39600(3600*11) Rent paid :48000(4000*12) if we calculate annual basis his HRA exemption is Rs.38100 if we calculate on monthly basis his HRA exemption is Rs.34100. because one month he has not recieve his salary for that exemption is zero. in the above scenerio which is righat method to be followed. kindly guide us with explanation if possible Thanks in advance with Regards Prashanth prashantha_achar @ rediffmail.com

Samir (Chartered Accountant) (145 Points)
Replied 11 January 2008

I think therent agreement is not required, only rent receipt for the payment proof is required to be submitted with the employer.

CA.ROHIT GARG (PROFESSIONAL) (116 Points)
Replied 11 January 2008

I think that 2nd method (HRA exemption of Rs.34100) is right because it can be clearly seen from the facts provided by you that he has not recieved the HRA for 1 month.Hence the question of claiming HRA exemption U/S 10(13A) doesn't arise because in income tax it is well established that if one has not recieved any income then he is not required to pay any tax. I hope this reply will suit your satisfaction.

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Ashish M (Chartered Accountant) (2731 Points)
Replied 11 January 2008

the following notification would be of help; "-Expenditure must have been actually incurred - It is necessary for granting the exemption under section 10(13A) that the employee should have actually incurred the expenditure on rent. For purposes of deduction of tax, therefore, the disbursing officer should ensure that the employee concerned has in fact incurred the expenditure on rent. The payment of rent should be verified through rent receipts in the cases of all employees – [Letter : F. No. 12/19/64-IT(A-I), dated 2-1-1967.] Another circular would be of help too; Production of rent receipts - Only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the house rent allowance or any portion thereof from the total income of the employee. Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs. 3,000 per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent - [Circular : No. 9/2003, dated 18-11-2003/[Para 5.2-(9)].

(Guest)

Tax Paying

(Guest)

Hi,

I have worked in a software company in chennai for about five months(April'07 to august'07).When the time of exit I didnt get clear directions regarding HRA from the employer. Also, in their tax calcualtion and F&F they have not considered the HRA exemption and Recently, I recieved the form -16 from them without the HRA exemption, even they have mentioned in the salary slips.The present employer deducted accoring to the facts from the previuos F&F statement.Due to this my tax has gone up.

Now, Can i claim the HRA for the five months at the time fo filing the returns?

If yes, how to proceed further and file the returning in this issue.

Please guide me on this.

Thanks&regards

Bhishma Rao

(Guest)

What is the limit of rent above which we have to give rent receipt and land loard's PAN no.

(Guest)

Please let me know what is the calculation to get H.R.A deduction ?

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(Guest)

Sir,

I am paying rent to my wife for her flat . Wife also residing in same flat. Can i claim HRA exemption under Sec 10(13A).

(Guest)

details about HRA and form16

(Guest)

we are staying in a rented house which is in the name of my wife hence the rent receipt. my wife is housewife, so can i claim hra rebate for the rent.

(Guest)

Originally posted by :Prashanth
"	Dear Sir i have query on HRA exemption for incometax calculation. i have paid salary for an employee for whole financial year out of which one month he was on Loss of pay(LOP) because of some other reason. Here when we calculate his HRA exemption on annual basis his Basic : 99000(900011) Actual HRA :39600(360011) Rent paid :48000(4000*12) if we calculate annual basis his HRA exemption is Rs.38100 if we calculate on monthly basis his HRA exemption is Rs.34100. because one month he has not recieve his salary for that exemption is zero. in the above scenerio which is righat method to be followed. kindly guide us with explanation if possible Thanks in advance with Regards Prashanth prashantha_achar @ rediffmail.com	"