Hra calculation

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For the purpose of HRA calculation, if person A pays rent for a house to person B (amount X) and for fittings + fixtures to person C (amount Y) for the same house, can person A claim amount (X + Y) as total rent paid for that house?

Replies (4)

No such inclusion cannot be made. It should be separtely given if the both are given by same person it shall be treated as income from business. Here, it is separate person which should be separtely treated.

 

It is that time of the year when we are talking about our New Years Resolutions and Tax Planning for this financial year that ends in just a few weeks. Companies have set out "End Dates" by which time you should submit all your Investment Proof's and documentation for Tax Benefits. Here you can easily calculate your HRA using a simple and accurate app and also find out your tax amount.

https://play.google.com/store/apps/details?id=AppsLabz.IndianTax

As far as concerned about Rent means " Amount paid by way of expenditure actually incurred by assessee in respect of residential accomodation occupied by him " As per Rule 2A So interpretation of above is Rent menas everything paid for residing including electricity . Becoz electric meter is on the name of landlord & you are paying somewhat like maintainence & for residing in house .
Hence even if the same Furniture and fitting charges paid to A (Amount Y) shalll not be allowed to be treated as Rent.

 

agree with saroj

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