Dear Friends,
I am a director of a pvt ltd company and planning to use a room in a rental Apartment as my main office. In this case, would it be tax efficient to lease the Apartment in the Company name or should I lease in my personal name and go for HRA to avail of tax benefits? The rent is likely to be approx 10,000 per month. Can you please suggest a tax efficient way of using the apartment for both personal and business use. Thanks for your help!
HRA is meant for house (which is for accomodation) but not for office purpose.
So it would be better if the lease agreement is made in the name of company.
Dear SP2010,
You can claim both the benefit i.e HRA to the extent ur paying rent (proportionate) for ur accomodation and also leasing it out the balance portion to ur office. The rental income received from office will be income from sub-letting taxable under income from other sources and u can reduce the proportionate rent paid by you as an expense against the same.
Regards
Kanti Jain
Abic and Mani Chartered Accountants
Kottayam
B.Com
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Malhotra Rajesh & Associates
New Delhi
B.Com
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CCI
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