Can a Housing Deed be entered with Retrospective Effect and can HRA be claimed on the same for the retrospective period ?
For Example : The Tenant enters into a contract with the Land lord on Jan 2019 stating that the the lease has been executed from the period of April 1st 2018 for a period of 11 months, for a monthly rent of RS.9,000. Can he claim HRA Deduction for the same from April 2018 or Jan 2019 ?
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Retrospective Effect of housing deed
Replies (2)
As per the existing laws you cannot register the deed with retrospective effect, so without valid deed you cannot get any HRA benefit.
1. The overall point in making an agreement is to give a legal consideration and make it binding between the parties to the agreement. If the backdated are valid if would totally nullify the effect of entering the agreement in the first place.
2. Memorandum of understanding could be backdated but it cannot be backdated for the event which had already taken place. In your case paying of rent is the event.
3. Hence, retrospective effects are only for laws and regulations and it cannot be stretched for legal agreements.
4. Our expert view in this absolutely correct and in conclusion rental agreements cannot be entered with retrospective effect.
Please correct me if the above interpretation has an alternative view.
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