Hra exemption

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Riyas cv

Riyas cv (Querist)

22 December 2011 is there any restriction for claiming HRA whether rent actually not paid, but which is payable...?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

22 December 2011 For HRA the requisite condition is Rent expenditure incurred. Rent Paid or Payable both are alike when mercantile system of accounting is being followed.
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A salaried employee also follows mercantile system. Salary is taken on the due basis as a policy matter. When due salary has not been received by the employee, it still remains taxable in his hand.
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In my view, the criteria of incurring the expenditure is more relevant and "incurring" includes both paid and payable.

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Guest

Guest (Expert)

22 December 2011 HRA can be claimed whether rent is paid or payable during the year.

Riyas cv

Riyas cv (Querist)

22 December 2011 Thank you Ms Neha & Mr Paras

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