JOSEPH DAVID (GM FINANCE) (286 Points)
30 March 2010An employee is getting HRA from employer. In the same municipal limits he is having his own house and given on rent. He is staying in a different house and paying rent. Can rent be deducted from HRA-
Rent he is getting from own house is shown in income from House property-
Is it permissible to claim rent payment from HRA though he is having own house and given on rent
Thanks in advance
Joseph David
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 30 March 2010
HOUSE RENT ALLOWANCE
1. Rental House
2. Not owned by you or your spouse.
3. Rent Slips
1. Exception:-
Minimum of the following three is exempt:
-Actual HRA received
- Rent paid minus 10% of Salary
- 50% of salary if you live in Metros, otherwise 40% of Salary
2.Ideal rent
ideal rent amount for the “Rent Receipt” you need to submit to your employer. Follow the simple formula:
Ideal Rent = HRA + 10% of Salary
3. Stay with parents:-
Yes you can claim the exception but if the lanlord is spouse it is not advisable to claim the exception.
Own a property but living on rent;
if you have a owned property in differ city and a rented house in differ city both exception can be claimed but the owned property shouldnt be rented.
but if you have owned and rented in same city it's normally couldnt be claimed. but in metros yoyu can prove the distance of the office and owned hose and then only you can claimed
HRA Exemption Calculation- Most of us know about HRA Exemption but to calculate the exemption is a little bit complex. So there is a calculation as well as a excel based calculator to calculate HRA Exemption.
In HRA Exemption the least of the following is exempted.
1- HRA Received.
2-50% of salary living in metros and 40% in other cities.
3- Rent paid in excess of 10% of salary.
regards,
ratan
CAclubindia
