DEDUCTION OF RENT PAID TO WIFE

[S.C. WADHWA]

Whether it is permissible to claim deduction of rent paid by husband to his wife against HRA received by such salaried husband.

[DR.MARIAPPAN GOVINDARAJAN]

If she is an income tax assessee it is permissible, otherwise the revenue of your wife will be clubbed in your hands.

AI Summary

Deduction of rent paid to spouse permitted when spouse is a taxable assessee; otherwise income is clubbed in payer's hands.
If the spouse is a separate income tax assessee and reports the rental receipt, rent paid to her can be claimed as a deduction against the husband's HRA; if she is not an assessee, the receipt will be clubbed in the husband's hands.