HRA Exemption of Working Woman post Marriage …

POSTED BY TURAB ON February 7, 2013 11:52 am COMMENTS (11)

My wife is working. Before marriage she used to submit HRA agreement in lieu that she is paying rent to her dad. (what normally we do in Mumbai) and same I do for myself in lieu that i pay rent to my dad. (Paying rent to your parents).

Now post marriage how can she submit HRA agreement in case she wants to get HRA exemption?

11 replies on this article “HRA Exemption of Working Woman post Marriage …”

  1. TURAB says:

    Hi Ashal,
    I will be showing Rs.10,000/- rent per month and my wife will show Rs.5,000/- rent per month. Hope this is okay.

  2. Dear Turab, how much tax saving you can make out of this? Because Tax saving ‘ll involve your complete income to calculate. So I want to know, how much Rent you & your wife ‘ll show collectively to get the tax benefit?

    Thanks

    Ashal

  3. TURAB says:

    Hi Ashal,

    The basic / hra for me is: 16100 / 9660
    The basic / hra for wife is: 11139 / 5948

    Thanks
    Turab

  4. Dear Turab, May I know the basic salary & HRA your wife is getting & the possible Tax saving she may avail, as per your own crude calculation?

    thanks

    Ashal

  5. Ramprakash says:

    A short brief of the Income tax Circular no 05/2011 is given below :

    Employee who are paying house rent less than Rs. 15,000/- per month and claiming HRA benefit are compulsorily required to furnish the dully filled original rent receipt, Please Note – The rent receipts must be signed by landlord and supported with original revenue stamp pasted on it.

    Employees who are paying house rent of more than Rs. 15,000/- per month (more than Rs. 180,000/- per year) and claiming HRA benefit are compulsorily required to furnish the following documents along with original rent receipts to claim the HRA exemption benefit.

    -> Copy of Landlord PAN#
    -> Copy of Lease agreement
    -> In case landlord does not have a PAN, a declaration to this effect from the landlord, along with his name and address, is required.

  6. A lot of companies do not ask for AGREEMENT PROOF, if the rent amount is less than specfic number, like when I worked in YAHOO , it was Rs 10,000 . So anyone who was claiming Rs 10,000 or more rent, had to show the agreement, so check with your company and your wife company what is that limit.

    Manish

  7. TURAB says:

    Thanks Free Financial Calculators for the quick reply:

    In such a case I am staying in a property (home) owned by my father and if I claim 15,000/- as per month rent paid to him, then this can be broken into 2 parts viz. 10,000/- by me and 5,000/- by my wife, correct?

    Also, will I need to create 2 different agreements?

    1 will be between me and my dad.
    2 will be between my wife and dad, is this correct?

    1. I think a single agreement should do. It has to clearly mention the total rent the part you are paying and the part she is paying and signed by all parties (your dad and both of you.)

      1. TURAB says:

        Thanks for the quick reply “Free Financial Calculators”

        Will this agreement stand a valid state in Income Tax return filing?
        Will Hr / Accounts Dept of both of our company accept this ?

        How much value of stamp paper I have to use to make such agreement ?
        How I have to convey the lawyer / magistrate from whom I am getting this made to make it in a split method ? ( Hope they know it )

        1. Value of stamp paper depends on state. So best to consult an advocate reg. this.
          The agreement should basically state that “of amt X , Y is paid by me as rent and Z by my wife” (X = Y+Z).

          This is legally allowed and should not cause problem while registering.

  8. She cannot claim HRA separately. If you are staying in a property owned by your father the ‘rent’ can be split into two portions and each can claim HRA for one portion. This may not give you any additional benefit unless the rent is increased! If you are going to do this clear documentation will be necessary in case of queries from the taxman

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