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Exemption of house Rent Allowance U/s 10(13A) 04 October 2013

In a recent decision dated 12-07-2013, the ITAT Ahmadabad Bench ‘C’ in the case of Bajrang Prasad Ramdharani vs. ACIT, Circle-14, Ahmadabad [2013] 37 Taxmann.com 186 (Ahmadabad-Trib.) has held that the rent paid through bank transfers by the assessee as tenant to his wife who was landlord and both were living together, would be entitled to exemption u/s. 10(13A) of the I. T. Act, 1961.

It was held by the Hon’ble Tribunal that since the house was owned by wife of the assessee and assessee had paid rent to her through bank transfer entry, the assessee had fulfilled the twin requirements of section 10(13A) i.e. occupation of house and payment of rent and therefore entitled to exemption u/s. 10(13A) of the Act.

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