HRA
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 June 2010
If an individual received HRA from a company.And he showed that he paid rent aginst rented property.But that property is belong to the one of his family member.Then is it valid to give him a HRA by a co. or HRA deduction.If yes then which document is required?
Shudhanshu Agrawal
(Expert)
28 June 2010
There is no problem for the company to provide HRA exemption. Documents which are required are copy of rent receipt or lease deed.
But company needs to clarify with him that he is not coming in the defination of deemed owner u/s 27 of Income Tax Act, 1961. If he is deemed owner u/s 27 then deduction will not be allowed. But if he is not the deemed owner in that case HRA exemption will be allowed to him and amount of rent which is considered for his HRA exemption will be taxable in tha hands of the family member.
But company needs to clarify with him that he is not coming in the defination of deemed owner u/s 27 of Income Tax Act, 1961. If he is deemed owner u/s 27 then deduction will not be allowed. But if he is not the deemed owner in that case HRA exemption will be allowed to him and amount of rent which is considered for his HRA exemption will be taxable in tha hands of the family member.
Message likes :
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28 June 2010
TOday maximum no. of employees are getting HRA deductin for showing rent to thier family member even if showing rent to spouse also.
For safe point of view, you should also file return of owner of house with house income.
Documents required for various types of Investments:
Rent Receipts
The First month (Apr 10 or month of joining) to Latest rent paid receipt in Original AND a copy of the current rental agreement with the Landlord. (The receipt should necessarily have details like Name and address, signature of the Landlord and should be self attested by the employee). If you have already submitted the original receipt – Plz mention Original Rent receipt already submitted till _______ Month. Rent Receipts for the Month of Feb & March may be submitted on or before 20th March 2011.
NOTE :-
- The rental agreement should necessarily cover the period for which the exemption is being claimed for.
- If in the agreements there is Rent and Maintenance mentioned; only RENT should be considered.
- If the agreement is not in the name of employee exemption will not be given.
For safe point of view, you should also file return of owner of house with house income.
Documents required for various types of Investments:
Rent Receipts
The First month (Apr 10 or month of joining) to Latest rent paid receipt in Original AND a copy of the current rental agreement with the Landlord. (The receipt should necessarily have details like Name and address, signature of the Landlord and should be self attested by the employee). If you have already submitted the original receipt – Plz mention Original Rent receipt already submitted till _______ Month. Rent Receipts for the Month of Feb & March may be submitted on or before 20th March 2011.
NOTE :-
- The rental agreement should necessarily cover the period for which the exemption is being claimed for.
- If in the agreements there is Rent and Maintenance mentioned; only RENT should be considered.
- If the agreement is not in the name of employee exemption will not be given.
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