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.

AI Summary

Husband can claim HRA deduction for rent paid to wife if she files taxes; otherwise, income is combined. A query was raised about the permissibility of a husband claiming a deduction for rent paid to his wife against the House Rent Allowance (HRA) he receives. The response clarified that such a deduction is permissible if the wife is an income tax assessee. If she is not, her rental income would be combined with the husband's income for tax purposes.