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Thread: HRA query?

  1. #1
    PolicyWala NewBie
    Join Date
    Apr 2009
    Location
    Pune
    Posts
    17

    Exclamation 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



  2. #2
    PolicyWala NewBie
    Join Date
    Apr 2009
    Location
    Mumbai
    Posts
    1

    Default

    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.


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