Query on the House Rent Allowance (HRA) exemption?


Query – I am paying a house rent for Rs 14,000/- per month and additional Rs. 1,200/- towards maintenance for which receipt is being given to me every month. Will I get House Rent Allowance (HRA) exemption on Rs. 14,000/- or Rs 15,200/-. Please clarify. [N.K.Panda-niroj_p@yahoo.com]

Reply by -CA Naresh Jakhotia

HRA exemption is available towards rent payment. The question here is what type of payment could be considered as rent. Whether payment towards maintenance, electricity, additional amenities & facilities could be considered for HRA exemption?

Given the clear cut wordings of the section 10(13A) & without any precedent as of now stretching the meaning of “Rent”, I am of the view that exemption would be admissible only towards Rent payment and not payment done towards electricity, maintenance charges etc. If however, you make the lump-sum payment to the landlord towards rent who in turn makes the payment of maintenance charges or others, the exemption u/s 10(13A) could not be denied.

Read More:

[button color=”” size=”” type=”outlined” target=”” link=”https://thetaxtalk.com/income-tax/”]Income tax[/button] [button color=”” size=”” type=”outlined” target=”” link=”https://thetaxtalk.com/gst/”]GST[/button] [button color=”” size=”” type=”outlined” target=”” link=”https://thetaxtalk.com/discussion-on-tax-problem/”]Query[/button] [button color=”” size=”” type=”outlined” target=”” link=”https://thetaxtalk.com/category/income-tax/latest-update/it-judgement/”]Income Tax Judgement[/button]