If any employee paid rent to the Single owner in the form of Hire Purchase Agreement & Lease Agreement, So he can claim the HRA or not...
Dear Sir,
If the payment is the form of rent only then eligible for HRA exemption. Under Hire purchase, hirer becomes the owner of the property after the payment of last installment. Please check whether you are paying rent or installment (principal and interest). If it is installment then you are not eligible because it amounts to financing.
Thanks
Sorry I used Hire Purchase instead of Hire Charges Actualy, Employee is paid Hire Charges of Rs.25,000/- for using Furniture & Fixtures as per Hire Charges Agreement and Lease amount of Rs.30,000 as per Lease Deed to the same owner of the same property. In this case what to do and How to claim HRA Exemption. I think all this done to save from Section : 194IB - TDS on Payment of Rent by Individual or HUF If Rent is more than Rs.50,000/-
Then rent for house will be taken as Rs. 30,000 and accordingly the calculation for HRA exemption will take place. But there should be separate figures in the agreement to substantiate it in future.
Hi,
Rent of rs. 30000 will be considered for HRA computations..
Regards,
Nikhil.
in this case under HRA you can claim only 30000 because 25000 is not house rent its rent of furniture and fixtures.
yes you are right , might be land lord not agree for TDS but in this case also as Annual Rent is more than 1 lakh thus you have to submit PAN of Land lord with your company.
HRA covers only amount paid by way of Rent for House Property. Other factors are not covered under the same. As such you can claim HRA only for Rs. 30,000 as Lease amount not for Hire Charges of F&F.
Hi,
You can claim HRA for only 30K.
You are eligible to claim HRA for only 30k.
