Hra exemption possible or not?

667 views 5 replies

A Roy

Staff

128 Points Joined July 2012

First, if someone did not disclose amount of house rent paid by him to his employer, so that form 16 has no mention of it, is it possible for him to claim HRA deduction while filing return? (or claim refund after filing is done?) note that he failed to submit rent receipts to his employer in this case. If answer is yes, then please check if amount of deduction is calculated correctly here :actual rent paid:5000, HRA: 4000, grade pay+ pay in pay band+DA=32000 per month (this amount excludes medical allowances, and HRA). rent paid in excess of 10% basic salary:5000-3200=1800 per month. I consider "per month" since DA does not remain constant throughout year. I guess one can calculate this way and add for 12 months. Is this method correct?

Replies (5)

Yajendra Adhikari

Chartered Accountant

334 Points Joined April 2009

Yes, he can still claim HRA. The calculation by you is correct.

CA A.Muthu Prabu

83 Points Joined September 2008

Heb is eligible for HRA and ur Method of computation is correct

A Roy

Staff

128 Points Joined July 2012

Thanks for your replies. One more doubt is needed to be cleared: In case the IT department officials ask for proof of house rent paid at later stage, is it enough to submit/produce the receipts alone? I read in some website that these receipts should be "stamped"; unfortunately the receipts in this case are like printed forms with blanks where the owner writes amount of rent received, name of the person from whom it is received and the month for which rent is paid. He finally signs, all done with ink pen. There is no "stamp" of the owner in the rent receipt given. Are these valid rent receipts for IT deduction purpose?

Yajendra Adhikari

Chartered Accountant

334 Points Joined April 2009

If they are paid in cash, you need to have revenue stamp pasted in receipts. Also, make sure that the PAN number of Owner is mentioned in Receipts.

A Roy

Staff

128 Points Joined July 2012

Thanks a lot. So in this case the problem seems to be more due to formalities. The rent had indeed been paid in cash. Now if the rent paid is less than Rs5000 (e.g., Rs4000) per month, is a revenue stamp still necessary on the receipt? I heard that for transaction amount below Rs5000, no revenue stamp is necessary. (The numbers given in the question are only for example.)