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HRA exemption.

mohitgupta2103@gmail.com (mohitgupta2103@gmail.com) (110 Points)

23 November 2018

can a salaried employee doing job in his hometown and living with parents can claim hra exemption in respect of rent paid to his parents. can assessing officer disallow the same even if there are proper receipts and rental income is shown by parents in their return of income. kindly clarify in detail and probability of allowance or disallowance of the same?

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5 Replies

VARUN MAHAJAN ADVOCATE (Proprietor) (339 Points)
Replied 23 November 2018

Yes it can be disallowed

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Sree Rag (14 Points)
Replied 23 November 2018

Here in this case...HRA allowance can be claimed....as there is proper receipts to support his judgement and the rent received is filed in his parents income tax returns...

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VARUN MAHAJAN ADVOCATE (Proprietor) (339 Points)
Replied 23 November 2018

I don't disagree with you sir but we have to respect the judgements delivered

The Mumbai Income Tax Tribunal delivered a very important decision on the claim for tax exemption on HRA (House Rent Allowance). Let us analyse the decision in details, with its ramification and relevance for salaried employees.

Sree Rag (14 Points)
Replied 23 November 2018

With all due respect...mr.varun....limited to my knowledege and expertise in this regard...there should not be any problem in claiming the HRA exemption, as long as you can prove the payment of rent with evidence like a rental agreement or regular payments through banking channels. In case of cash payment, there should be sufficient cash withdrawal from the bank. You also need to ensure that the residential address, as mentioned in the relevant documents, like income tax records, ration card and bank records, is the same, with respect to which you are claiming the HRA exemption.(this verdict was given by Mumbai Income Tax Tribunal in a case a relevant case law)...

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PRASHANT (CAFINAL) (2 Points)
Replied 18 December 2018

Is there any need to File Document like Rent Receipt and PAN of landlord and If yes then how and to whome.?
because no details are asked while filing Return.