Please Help: HRA Exemption
Posted Date : 20-Feb-2014 , 01:43:42 pm | Posted By: CA. Krishnakant Agrawal
Category :
Income Tax | Answers :
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one of employee has paid rent to joint owners of the house in which he lives. Rent is paid separately to each joint owner (90000/- each) i.e. total 1.80 lac
both joint owner are not providing their PAN as rent is paid below 1 Lac. how will employee get the benefit of HRA?
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| Posted By : Vishal Shah |
01-Mar-2014, 12:12:17 |
| HRA is exempt to the extent of Least of the following;
a. Actual HRA received
b. Actual rent paid less 10% of salary
c. 50% of salary in case the accommodation is situated in Mumbai, Delhi, Kolkata or Chennai and 40% of salary in case of any other city
From the above, it can be argued that the deduction is subject to actual rent paid. In your query, the actual rent paid by the employee is Rs. 1.80 lac (i.e. Rs. 90,000/- to each joint owner) and hence in my opinion the benefit of HRA will be calculated considering the actual rent paid of Rs. 1.80lacs
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