House rent to spouse

Page no : 2

last man standing (officer) (35 Points)
Replied 08 June 2011

last post on /forum/details.asp?mod_id=5679&offset=2 says

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For paying rent to wife, you will be entitled to claim exemption under Section 10(13A) of the Income Tax Act, 1961, read with Rule 2A of the Income Tax Rules, on the HRA received by you from your employer as long as you provide the rent receipts paid to your wife for staying in the house owned by her.

It is to be noted that the HRA benefit is denied only if the assessee stays in his/her own house or does not pay any rent for the accommodation occupied by him/her.

Your wife has to show the rental income received from you as 'Income from House Property'

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	Rent depends wher u stay ,wat is d rent in similar areas /ur surrounding area. etc There are several factors tht decides d rent of any property including its use. so more details req for proper advise.

agreed

last man standing (officer) (35 Points)
Replied 08 June 2011

i think what matters is whether the place is metro or non-metro........... for that 40/50% calculation thing................

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 08 June 2011

Originally posted by : last man standing
	thank you.... i went through the it dept website & it says my income would come under 194J. and possibly charged @ 10%. that would be a tax of 60,000 ??? that is more than what i would pay if it was salary ? another point. 194J says professsional income is not taxable if gross sales/turnover is less than that specified in 44AB(rs 40 lac) . . . how can one calculate that ??? thanks

professional contract means you are working in your professional capacity with the company, n ot in emp-loyment terms, i.e you are set free to render professional services to another company at par with this company, hence 10% TDS applicable

employees are full timers, and they can not get dual employment, also they have to pay contributions for employment benefits, so they are in diff section of TDS.

sec 194J is TDS, and 44B is audit criteria, both are diff

your query was related to TDS from rent to wife, where you can not deduct TDS as you are not falling under 44AB, but the deductor who is paying you is falling under 44AB

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last man standing (officer) (35 Points)
Replied 08 June 2011

thank you for your inputs.

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Vikash Kharvar (Dy. Manager -F&A) (469 Points)
Replied 08 June 2011

Originally posted by : U S Sharma
	use banking transactions for rent payment, as in case of any litigation with department, it wil be totally disallowed in absence of bank entry

Arun nair (-) (27 Points)
Replied 09 June 2011

Dear friend,

i reply to you referring to an article tat appeared in The Economic Times (Dated7th june,2011 Pg-16 , Perswonal Finance) It states that exemption on HRA can be claimed on rent given to parents . However, you cannot claim rent paid to spouse as they are supposed to stay together. So, the income tax authorities will not accept payment of rent to spouse for exemption purposes.

In cases where one does not recieve any HRA, deduction under sec80GG for deduction in respect of rent paid shall not be admissible where the assessee or his spouse or his minor child own an accomodation at the place where one works or has his office or carries on any business or profession.

So, you are not eligible for either exemption or deduction under the IT Act.

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Harshit (Arbitrager) (215 Points)
Replied 26 July 2011

Hi,

I do not recieve any HRA from the company but I pay rent to my Father on a monthly basis, can I Claim a Deduction/Exemption. I do have reciepts and rent agreement. If yes, under what section should i deduct it.

Thanks.