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Hra exemption

Tax planning 407 views 2 replies

CA Piyush Jain

A Practicing CA

211 Points Posted on 01 February 2015

Hello,

Pls help me with the following issue:y

Mr. A and His mother Mrs.B are the join owner of a residential house property.

Can mr. A claim HRA exemtion by showing that he is paying Rent for the portion owned by Mrs.B to Mrs. B ( His mother).

and

in second case

if B is a friend of mr. A.

Reply ASAP.

Thank You.

Replies (2)

Ramit sharma

assistant

52 Points Posted on 01 February 2015

In first case - no exemption can be claimed because he is living in his own house, hence all HRA receipts from employer is taxable u/h salary (sec. 10(13A))

Ramit sharma

assistant

52 Points Posted on 01 February 2015

In the second case - he has paid rent to a friend Mr. B, the least of the following is exempt 1. Actual rent received 2. Rent paid - 10 % of salary 3. 40 % of salary Here salary means (basic + DA + COMMISSION based on turnover )