HRA query?

Hi Taxman,

To save tax, I have a rent contract with my mother wherein I am supposed to pay her the rent, which is slightly more than my HRA. However I have not paid any rent to her yet.

Query -
If I have not paid during Apr'07 to Mar'08 but show it as a loan in my balance sheet would I still be eligible for the HRA exemption.

Basically 10(13A) says rent paid over 10 % of basic+DA. does the word rent paid have any implications, since I have not actually paid but shown it as interest free loan from her to me.

Regards,
Mrinal

One of the limit for HRA exemption is Rent paid in excess of 10% of Salary.
Paid is the word here. Since you havent paid any rent you are not elligible to claim the exemption.