Advice sought on HRA

DEAR RAHUL,

FOR CLAIMING HRA IT IS NOT NECESSARY THAT THERE SHOULD BE A WRITTEN RENT AGGREMENT..

THE ONLY THING REQUIRED IS U HAVE TO PRODUCE RENT RECEIPTS AS A PROOF OF PAYMENT OF RENT TO UR EMPLOYER...

IN THIS CASE, I WOULD ADVICE U TO MAKE A SEPARATE ARRANGEMENT FOR THE PAYMENT OF RENT INSTEAD DIRECTLY INCURRING THE CAPEX ON REPAIRS...IF FUND IS AN ISSUE AT UR UNCLE'S END THEN U CAN ALWAYS GIVE INTEREST FREE LOAN TO UR UNCLE.. BUT LET THE CAPEX TO BE PAID BY UR UNCLE...

NOW SUPPOSE,

1) U HAVE AGREED TO PAY RENT @ 10,000 / MONTH,

2) BUT INSTEAD OF PAYING RENT U INCURRED 2LACS ON REPAIRS

3) SINCE IT IS THE MUTUAL UNDERSTANDING OF BOTH OF U, UR UNCLE WILL CARRY FORWARD THE REMAINING 80,000 TO NEXT YEAR

4) BUT UNDER INCOME TAX U WILL NOT BE ALLOWED TO CARRY FORWARD THIS 80,000 TO NEXT YEAR

THEREFOR U CAN FOLLOW THE FOLLOWING PROCEDURE

1) U CAN PAY THE RENT OF 1,20,000 & OBTAIN RENT RECEIPTS AGAINST THAT...(IT IS NOT NECESSARY THAT RENT SHOULD BE PAID IN 12 MONTHLY INSTALLMENTS U CAN ALSO MAKE THE PAYMENT OF RENT FOR FULL YEAR IN ONE TIME)

2) U CAN GIVE A LAON OF 80,000 TO UR UNCLE...

3) NOW UR UNCLE CAN INCURR THE CAPEX OF RS, 2 LACS

4) FOR NEXT YEAR U AGAIN MAKE THE PAYMENT OF 1,20,000 AND OBTAIN RENT RECEIPTS FROM UR UNCLE..

5) OUT OF THIS 1,20,000 UR UNCLE WILL REPAY UR LOAN OF 80,000...

TRUST ME THE ABOVE PROCEDURE WILL BE HELPFUL TO U AS WELL AS TO UR UNCLE FOR INCOME TAX PURPOSES..