Dear Sirs,
The assesse owns a house in Bangalore and is let out. He stays in a rented house which is located 22 kms from the own house.
Can he claim HRA and offer the let out property income for tax ?
Please advise,
Many thanks,
Sudharm
Sudharm (Employment) (27 Points)
29 December 2011Dear Sirs,
The assesse owns a house in Bangalore and is let out. He stays in a rented house which is located 22 kms from the own house.
Can he claim HRA and offer the let out property income for tax ?
Please advise,
Many thanks,
Sudharm
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 29 December 2011
Yes, he claim HRA and offer the let out property income for tax..
Exemption is not available to an assessee who lives in his own house, or in a house for
which he has not incurred the expenditure of rent (for reference you can read sec. 10 (13A) with rule 2A)
vidya
(CA FINAL industrial trainee)
(137 Points)
Replied 29 December 2011
YES HE CAN. provided he suffices the condition for claimin HRA and a reasoning to the employer and dept tat the reason of stayin at a rented house is cosa his work.
Rajkumar
(SC)
(25 Points)
Replied 29 December 2011
Hello
Sorry please ignore my earlier message. I was trying to post a new message, but instead replied to your message.
Rajkumar.
Bhanu Prakash Rao
(Think Beyond Stay Ahead...!)
(1064 Points)
Replied 29 December 2011
Agree with Yogesh Bhandari
deepak
(Job)
(69 Points)
Replied 29 December 2011
yes , mr. bhandari is right,, the only condition which debars assesseee to claim HRA exemption is that employee should not reside in his own accommodation .if however , the employee has his own accommodation , but resides in any other rented house , exemption is available to the extent least of the follwoing:-
1.actual HRA received.
2.rent paid minus 10% of salary
3.50%(in case delhi,mumbai,kolkata,chennia) or 40% of the salary.
salary means basic salary+DA(to the extent it forms part of retirement benefits)+commission (if it is based on percentage of turnover).
it is also neccesery that employee has actually paid the rent.
MUKESH KASANA
(Article )
(21 Points)
Replied 30 December 2011
mr. bhandari and mr. deepak is right HRA deduction is claim but not trated selfe occupide asseess own house.
CA Kiran Sutrave
(CA)
(428 Points)
Replied 31 December 2011
Yes the Assessee can claim HRA in his salary calculation and he will have to offer income from letting the house property for tax purpose.
CAclubindia
