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| If a person has doubts about whether he can take advantage of HRA by paying rent to his parents or spouse, then today we are going to clear this doubt in this article. Let's know about it. |
New Delhi, Business Desk. The vast majority of individuals know that assuming they live in a leased house, they can guarantee charge exception based on the House Rent Allowance (HRA) got from their manager. For this, the genuine HRA got, 10% of fundamental compensation less lease paid and 40% of pay (half in the event that the house is situated in Mumbai, Kolkata, Delhi or Chennai) can be asserted. Whichever of these is less, based on which tax break is accessible. In any case, presently the inquiry is, could an individual at any point take the advantage of HRA by paying rent to his folks or mate?
Charge master Balbant Jain expressed that there is no notice in the assessment arrangements to bar guardians, kin or a couple from asserting HRA on lease paid. Anybody can guarantee charge exclusion by paying rent to his/her folks or his/her life partner however there are a few fundamental necessities. Above all else, the house for which the individual is paying the lease should reside in that house. Likewise, the house ought not be for the sake of the individual paying the lease.
That's what he told assuming an individual pays the lease for the entire year once toward the year's end then it isn't thought of as right. Endeavors ought to be made that consistently the lease ought to be shipped off the financial balance of the individual in whose name the house is found. Then, at that point, he (in whose name is the house) whether your folks, spouse, wife or kin.
Make sense of that HRA is absolved from annual assessment under area 10 (13A) of the Income Tax Act. The advantage of assessment exception on HRA is accessible just to the individual who is salaried and is residing in a leased house. The people who have their own business can't exploit charge exception based on HRA.
