IT benefit

This query is : Resolved

phani kumar (Querist)
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23 October 2009 Hi.. Sir..

My query is, One of our employee’s husband taken home loan & loan amount paid by him and he is getting IT benefit. Both or staying in own house only. Both are working different companies. She want's to avail rent benefit on here salary. Is it possible to get the benefit.. which clause or section can avail / can not avail the benefit...

I am awaiting your reply.

Phani Kumar,
Medvarsity Online Limited

shakuntala chhangani

shakuntala chhangani (Expert)
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11 November 2009 No she can not get the benefit. consider the following :
as per section 10(13A) read with Rule 2A, the HRA received by the employee is exempt to the extent of least of the following three :
a. 40% or 50% of the salary XX
b. HRA received by the employee XX
c. excess of rent paid over 10% of
salary XX
whichever is less
now, since she is not paying any rent, condition 'c' above will be nil amount and it being the lowest, HRA will not exempt u/s 10(13A). also she can not even claim deduction u/s 80GG as her husband owns a house in that locality.
thanks and regards,
CA Shakuntala Chhangani

phani kumar

phani kumar (Querist)
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22 December 2009 Thank you very much madam...

Phani Kumar

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