House rent paid by HUF bank account

This query is : Resolved

Share Report Follow Query Ask a Query

RP (Querist)
Follow

22 April 2023 If i pay house rent to my owner by my HUF bank account; can it be considered under tax free income ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 April 2023 Its expenditure to you, where is the question of income?
Does the bank reimburses it?

RP (Querist)
Follow

22 April 2023 Sir,
Rent paid is tax free under HRA. only the clarity required is related to rent paid for family accomodation from HUF is tax free ? please elaborate

RP (Querist)
Follow

22 April 2023 Please mention what are the tax drawables/expenditures from HUF bank accounts can be considered exclusion from Income/Tax free

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 April 2023 Rent paid by HUF acc is not tax free.
HRA received by individual employee is exempt to certain extent.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 April 2023 None of the expenditures except that u/s. 80D, 80DD, 80DDB & 80G are exempted for HUF.
Investment made as per sec. 80C can be claimed under IT act.

RP (Querist)
Follow

23 April 2023 https://incometaxmanagement.com/Pages/HUF/27-Drawings-Expenses-of-HUF.html#:~:text=Expenses%20on%20rent,Expenses%20on%20Electricity%20bill

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 April 2023 The article states that the HUF can EXPEND these many expenditures for any member/s of its family, from the corpus fund of HUF, but it doesn't mean they are tax exempt to HUF or it reduce any tax liability of HUF.
For example HUF can pay house rent for any member of its family, but it cannot claim HRA. HRA is tax exempt to individual earning salary income, which an HUF cannot earn. So, the amount gets reduced from its corpus.
On the contrary, the article specified that the expenditure incurred by HUF is not taxable income in the hands of its member/s. So, the member can enjoy it as tax free gift, but cannot claim its exemption against taxable income.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now