Exemption/Deduction u/s 10(13A) & 80C of I.T.Act

This query is : Resolved

CA Sanjay Baheti (Querist)
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10 June 2010 My client being an Individual is working in Ltd Company as General Manager(Projects).Also His wife is working in B.S.N.L. Both are living in a Govt. Quarters as alloted to his wife.

Also both are getting Forn No.16 from their Employers.

I am going to file his I.T. return for Asst. Year 2010-11 based on Form No.16.

On review of Form 16, i have noted that He claimed HRA exemption Of Rs.138552/-
as per Form 16 & also certain LIP's,PPF,LIC tax saver units,Mutual Fund units etc. in the name of his wife under chapter VI.

He explained me that entire savings u/s 80C has been made by himself(i.e.from his taxable income).

Now my query is whether he can claim HRA exemption as well as deductions under section 80C of I.T.Act s per law or not

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 June 2010 As per as 80C concern it is ok - he can claim what he paid from his taxable income for his wife. But HRA - benefit he cannot claim since he is staying with wife in Govt.Quarters. please advise him to correct it and pay tax

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