What all crieterias should be met to get HRA exemption under IT Act
1> Is it mandatory to prepare Rent Agreements ?
what if someone stays on Rent without getting into any sort of leave &
license agreemt., is he liable to get the exemption of HRA ?
2> If the "lessee" is maintaining rent receipts, is it sufficient to get the
exemption under IT Act ?
Yah if you have rent receipts showing the amount paid by you as rent no requirement of Rent agreement .
ya ca-abhishek is correct
Abhishek is correct.
All of you thanks for your comments...
Conditions to be fulfilled to claim exemption of HRA :
1. The Assessee should not live in his own house.
2. The assessee should have incurred rental expenditure with regard to his residential accomodation.
3. Rent paid must be in excess of 10% of Salary.
Salary for the purpose of HRA is BASIC + DA (Forming part of retirement benefits) + Commission at a fixed % of Turnover.
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