Rajeev Nair (Finance Professional) (510 Points)
14 February 2009What all crieterias should be met to get HRA exemption under IT Act
1> Is it mandatory to prepare Rent Agreements ?
what if someone stays on Rent without getting into any sort of leave &
license agreemt., is he liable to get the exemption of HRA ?
2> If the "lessee" is maintaining rent receipts, is it sufficient to get the
exemption under IT Act ?
CA Sakshi
(CA Practice)
(309 Points)
Replied 15 February 2009
Yah if you have rent receipts showing the amount paid by you as rent no requirement of Rent agreement .
shailesh agarwal
(professional accountant)
(7642 Points)
Replied 15 February 2009
ya ca-abhishek is correct
CA Tilak Raj Sharma
(Practising CA in Solan (H.P.))
(6374 Points)
Replied 16 February 2009
Abhishek is correct.
Rajeev Nair
(Finance Professional)
(510 Points)
Replied 16 February 2009
All of you thanks for your comments...
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 23 February 2009
Conditions to be fulfilled to claim exemption of HRA :
1. The Assessee should not live in his own house.
2. The assessee should have incurred rental expenditure with regard to his residential accomodation.
3. Rent paid must be in excess of 10% of Salary.
Salary for the purpose of HRA is BASIC + DA (Forming part of retirement benefits) + Commission at a fixed % of Turnover.
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