• HRA tax exemption

Recently, I have learned that my lady landlord is not original owner of the house and house is in the name of her husband. 

1. Is my lease agreement still be used to claim HRA exemption ? 
2. I also learnt that her name in bank records has spelling variation, though PAN is same. Will name spelling cause any issues ?

Regards
Asked 9 days ago in Income Tax from New Delhi, Haryana
Dear Sir,

1) It is their fault. You are still eligible for HRA exemption. Rectify the rent agreement for future claim.

2) It doesn't matter.

Keep lease/rent agreement with you showing same amount of rent for which you are claiming HRA. Also make payment by account payee cheque and if rent amount exceeds RS.50 lacs, deduct TDS @5% on it in the last month of tenancy.

Thanks
Vivek Kumar Arora
CA, Delhi
995 Answers
19 Consultations

5.0 on 5.0

Hi,

As you were not aware of the fact , it is not your fault.
1) for previous claim , you can use your lease agreement, but as you are aware of the fact, get you rental agreement redone with original owner.
2) No it wont.

you are good till the time, you are following all the compliances, Make sure you are paying rent through bank channels and have all rental receipts .
You cab still claim HRA for FY2017-18.
Vishakha Agarwal
CA, Bangalore
448 Answers
60 Consultations

5.0 on 5.0

Hi

It is not at all your fault. HRA exemption cannot be denied.

Get the rent agreement corrected.

Quote the husband's PAN to your company as PAN of owner of the house needs to be reported. There is nothing to do with the Landlady's PAN.

It's their lookout if they are taking the rents in the wife's account. Rental income for them shall anyways be taxable for the husband.

Maintain the rent receipts and pay the rents through banking channels only.
Lakshita Bhandari
CA, Mumbai
1647 Answers
43 Consultations

5.0 on 5.0

Yes, it is alright.
Vishakha Agarwal
CA, Bangalore
448 Answers
60 Consultations

5.0 on 5.0

Hi,

Hope you are doing well!

1. You just need to get amended rent agreement. HRA exemption will not be denied.

2.Also, please give husband's PAN number to company as the rent agreement is with name only.

3. Take the rent receipts because companies will not providing HRA exemption without receipts. Also transfer the rent through banking channel.

4. It is not your problem that they are taking the rent in wife's account. Rent income will be taxable in the hands of husband.
Payal Chhajed
CA, Mumbai
286 Answers

5.0 on 5.0

HI,

As long as you have paid rent, the scenario of who owns the property she or her husband does not make any difference to you. As per law, from the payers side, both husband and wife are one and not saperate. So no worries at your end. You can show any of their PAN of the owner and claim HRA.

Thanks
Damini
Damini Agarwal
CA, Bengaluru
246 Answers
12 Consultations

5.0 on 5.0

Hi,

Yes, it is perfectly fine. Difference in name spelling will not cause any issue for you.
Just keep paying the rent by banking channels and it should be fine.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
830 Answers
4 Consultations

5.0 on 5.0

Yes it is perfectly fine.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
830 Answers
4 Consultations

5.0 on 5.0

It is her problem not yours. You are eligible to claim HRA if you had actually paid rent and as per rent agreement.
Vivek Kumar Arora
CA, Delhi
995 Answers
19 Consultations

5.0 on 5.0

Hi,

1. Yes, you can claim HRA.

2. There is no issue in spelling mistakes. You can't do anything about it.

You will need rent agreement, rent receipts and proof of payment of rent to claim HRA.
Abhishek Dugar
CA, Mumbai
3078 Answers
135 Consultations

5.0 on 5.0

The landlord has to be the owner of the house. If not that's wrong. Anyway, you are not supposed to verify the legal ownership of the home, especially when you are not carrying out any business activity from a property, in which case you are more cautious. Most of the time the owner doesn't share such details with the tenants and tenants take them on face value. Anyway, in this case, ask to get another agreement so you can pay rent to the actual owner. Name spelling doesn't matter. Generally, only receipts are sufficient to claim the deduction. But in some cases, employers ask for rental agreement as well. Have both as a matter of best practice.
Amit Kumar Narula
CA, Bangalore
55 Answers

5.0 on 5.0

Name mismatch does not matters.

For HRA exemption you need rent receipts and Rent agreement.
Swati Agrawal
CA, Indore
407 Answers

5.0 on 5.0

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