Paying rent to my spouse

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2013 My spouse has taken home loan on her name. She is paying the loan from her own funds.
We are cohabiting.
My query is as follows
1)Can I pay rent to my wife and claim HRA?
2) can my spouse claim interest exemption u/s 24
3) How much interest can she deduct under sec 24? only upto 1.5 lakh or higher as technically if she takes rent from me it would be let out?
4) If property were considered let out, can she claim the entire house as let out or only a part?
Assuming i pay her fair market rent into her savings account

CA Krunal

CA Krunal (Expert)
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23 April 2013 Your case is not sustainable because as per Indian tradition this is not possible unless you can show on paper that you are seperated hence came to such arrangement.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2013 Yes you can pay rent to your wife and she can also claim deduction u/s 24. If you are getting HRA then it is better option., The maximum limit is 1.50 but depends on the year of loan taken. The transaction should be through a/c payee cheque and market rate of rent can be paid for the entire house.

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