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 return.so 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
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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
Aug 08
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
Aug 07
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
Aug 07
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
Aug 04
