Criteria you must fulfil to claim HRA exemption

Oct 22 2013, 15:27 IST
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A salaried taxpayer is eligible to claim a HRA exemption under Section 10(13A) of the Income Tax Act, 1961, in respect of an accommodation occupied him. A salaried taxpayer is eligible to claim a HRA exemption under Section 10(13A) of the Income Tax Act, 1961, in respect of an accommodation occupied him.
SummaryStaying in your wife’s house and paying her contractual rent could never have sounded so beneficial.

could be extended in the context of other family members), one may want to examine its applicability and apply the ruling with caution vis-à-vis situations where the rental income is taxable in the hands of the tenant under the clubbing provisions; after confirming of the tax rates applicable to both the taxpayer and the spouse; and based on the supporting documentation.

In either case, it may be advisable to seek a fact specific consultation as the taxman for now may not be set to allow this exemption.

Jay Unarkar

(The writer is associate director, Tax & Regulatory Services, EY. Views expressed are personal)

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