Hra benefit

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2011
x stays in a flat which is in a chsg and is in the name of mother -first name ,sister -second name and father -third name.Funding for the flat was done by father.
x wants to avail tax benefit on hra received by paying rental to sister -second name.would there be any IT problem.

what would be the income tax implication for sister ?Any other legal aspect that needs to be kept in mind

Please advise

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 November 2011 My view, it can be paid by making rental agreement with sister and paying rent and taking receipt. how ever the same income need to be declared by the sister in the income tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2011 Thank you very much.This rental income has to be declared by the sister under what head -income from other sources or income from house property.
In case it is the latter can the sister claim exemptions for expenses available under the act .Since the flat is in the name of 3 persons would there be any complicaions

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 November 2011 Rent received from buildings by the property owner need to be considered as House property income only. since your sister owner of the property. you can make agreement with her with consent of other owners also.

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