Sujit Talukder (service) (719 Points)
14 January 2009Foe HRA exemption calculation, what type of payment is treated as RENT?
For eg., a person pays Rs 1000 pmas REnt for 1st floor + Rs 3000 pm for Maintenance charges + Rs 5 per kwh for Electricity consumption.(which comes to around 2000 pm)
Whehter all the payments will be considered as rent paid for HRA exemption purpose?
BALASUBRAMANYA B N
(CCI STUDENT....)
(44679 Points)
Replied 14 January 2009
Hi
HRA exemption only what u pay for the rent, rest will not come to HRA.......
Sujit Talukder
(service)
(719 Points)
Replied 14 January 2009
Thanks for the reply.
But maintenance charges etc also paid towards House taken on rent?
What's the logic or legal point which limits the rent amount to 1,000 ( ie basic rent only)?
Would the position differ if 6000 consolidated rent is paid?
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 January 2009
Rent amount means the amount which is mentioned in the rent deed. For HRA exemption the amount paid by the employee to the landlord willbe treated as rent....for more clarification go through Section 10(13A)
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 January 2009
Dear Somya
There is no such limit of Rs. 1000 in case of rent exemption
Rent paid by employee can be upto any amount...please correct urself
Sujit Talukder
(service)
(719 Points)
Replied 14 January 2009
| Originally posted by :Shudhanshu | ||
| " | Rent amount means the amount which is mentioned in the rent deed. For HRA exemption the amount paid by the employee to the landlord willbe treated as rent....for more clarification go through Section 10(13A) | " |
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 January 2009
Thanks Mr. Sujit for correcting me....and im sorry that i have answered the question after reading 50% only....and sorry to somya as well
If about practice......i have done lot practice......but that mistake was due to carelessness
The answer for ur query is that in Section 10(13A) with rent in bracket it is mentioned that by whatever name called.....so all this willbe included in rent
Sujit Talukder
(service)
(719 Points)
Replied 14 January 2009
Its all right
My intention was just to point out the fact that unneccessary replies makt the post junk and makes it unusable to others who might be searching for similar kind of query.
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 15 January 2009
In my opinion, rent includes all payments made to the owner of the HP for enjoyment of the property i.e., it must be attributable to letting out of the property. So, all payments made by the tenant can be included in the purview of rent.
To avoid disputes, it is preferable to draft rent agreement in such a manner that it subtantiates ur claim
Vijay gandhi
(consultant)
(567 Points)
Replied 17 January 2009
Hi
HRA exemption only what u pay for the rent, rest will not come to HRA.......
Ritesh Sharma
(CA)
(58 Points)
Replied 17 January 2009
The Rent that will be considered will not include and electricity charges. It looks like the rent is split purposefully to avoid taxability under section 22 by claiming composite rent and then claim the actual expenditure. Hence, I would like to believe that the rent that would be allowed is only Rs.1000 only which the owner would offer to tax under Income from House Property. Do appraise me of any points that I may be missing
yogesh dave
(service)
(376 Points)
Replied 17 January 2009
whatever, amount paid to landlord will be treated as Rent whether it includes, muncipal tax, electricity charges, etc. or not include, does not matter. And the landlord has to show whatever amount he receives from the tenant as Rent Income only and he can show the electricity charges, muncipal tax as expenses against the rent income.
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 19 February 2009
Mr. Sujit
As far as concerned about Rent means
" Amount paid by way of expenditure actually incurred by assessee in respect of residential accomodation occupied by him " As per Rule 2A
So interpretation of above is Rent menas everything paid for residing including electricity . Becoz electric meter is on the name of landlord & you are paying somewhat like maintainence & for residing in house .
CAclubindia
