HRA deduction being misused

consider the case of a husband paying rent to his wife where the property is in the name of the wife.the husband claims the deduction as allowable in his IT return and the wife shows this as income in her return,this is no fraud because the receipt of rental income is declared by the wife in her tax this is no fraud..hence the way out is for the rental receipt to have the pan/aadhar no. of the person receiving the rent so that the department can link the deduction claimed with the tax return of the recipient. more  

View all 11 comments Below 11 comments
Why should you worry and direct the Government to implement terms & conditions of your own in such cases. If IT Act permits such deductions why should we worry! more  
No fraud. Setting off deduction, wherein the wife's income lesser, the husband can claim the HRA deduction. However, property in the name of the wife, a must. more  
if the lady has no other income, he - the IT filer , will benefit from the rent deduction, while the wife will benefit if her income is far less. but if income of both is taxable, then either way HRA will become taxable - deducted in some form. more  
Not really. There are so many exemptions allowed making it complicated to file. more  
Wife showing rent received in her ITR is ok. But every month husband has to make rent payment to her wife account and the bank interest will also be added in income. more  
Post a Comment

Related Posts

    • Congratulations LC members

      The biggest reform to stop private hospital loot has been ordered by supreme court. Prices for various medical procedures have to be standardised Yes, 7 years after we raised the issue i...

      By Sudesh Rai
    • Airlines delaying and damaging bags often

      Excellent survey released by LocalCircles on how airlines are handling baggage. https...

      By Reeta Kumar
    • Views on Unsubscribing English Newspaper

      My husband and I are tempted to unsubscribe all English newspapers as we find news to be increasingly biased in favour of businesses in ET Mint etc and in TOI HT in favour of Governments as oppose...

      By Shikha Chhabra
    • Update from Income Tax Dept

      References have come to the notice of the Income Tax Department (ITD) regarding apprehensions about a recent communication sent to taxpayers pertaining to mismatch of transaction amount shown in In...

      By Aditi Jain
    • Nutraceuticals and herbs

      Under the category of nutraceuticals and herbs all kinds of stuff is sold to people in India. Companies like Patanjali, Himalaya and hundreds of others are taking advantage and in the name of immun...

      By Nikita Goyal
    • Fantastic pesky call report by our circles

      What a good honest fearless report the LC Manager has brought out about pesky calls in India…

      By Shailesh Deshmukh
    • Ban cotton candy pan India

      Ban Pink Cotton Candy! The dye in it can cause cancer. Why only Tamil Nadu and Puducherry? The entire country, should ban pink cotton candy that contains Rhodamine-B, as it causes cancer...

      By Sujata Singh
    • Buy Now Pay Later services is a Dark Pattern

      Buy Now Pay Later is a financing service available online and offline when shopping. While it is helpful to some it is a major dark pattern and LC Manager must escalate it to RBI when yo...

      By Amit Mishra
    • Electoral Bond Transparency

      Was first demanded in our circle only Ruchika ji https://www.lo...

      By Amit Mishra
    • Supreme Court is still alive friends

      ELECTORAL BONDS UNCONSTITUTIONAL 1. Indian Supreme Court has scrapped the entire scheme as violative of Constitution and fundamental rights. 2. All new issuing by SBI to stop...

      By Ruchika L Maheshwari
    • Major fraud by competitive coaching classes

      Almost all the competitive coaching classes FITJEE, Akash-Byjus, Allen etc are engaging in a major fraudulent activity for decades and the education ministry of central or state govts have turned a...

      By Shailesh Deshmukh
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)