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Anil

Anil Rego  |340 Answers  |Ask -

Financial Planner - Answered on Mar 22, 2023

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Asked by Anonymous - Mar 06, 2023Hindi
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Dear Guru, My wife is working as a teacher in a school and her salary package is around 7.2 lakh per annum. She is paying the house rent @ 18000/- per month but does not have any rent agreement signed. The payment is being done by cheque and when we she approached her school for availing tax benefits under house rent she has been asked to submit the rent agreement. She has PAN card of the landlady and copy of her bank statement as proof toward making rent payment. Please advise how she can avail the benefit

Ans: A rent agreement is required to avail of HRA. Please work with your landlord to get this agreement executed.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Tejas

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Hi sir. Hope alls well with you n ur family. Sir i am a 75 year old lady living in south mumbai. I hav given my PAGRI flat of which I am BENIFICIARY OWNER / SOLE TENANT on rent to my grandson for 49,500 per month. He is claiming HRA on same. For proof he is submitting rent agreement between him and me on notarized stamp paper, Electric bill which is on my name for ownership proof of said flat, My Pan card and bank passbook xerox of both of us showing rent given by him and received by me, To his company. I am also filling my IT return and showing rent as my income. Now i hear that pagri flats cannot be given on rent. Hav no other source of income. Pls advise. Greatfully yours ZARINA.
Ans: "Pagri flats" typically refer to properties where the tenant (in this case, you) pays a lump sum amount to the landlord (previous owner) as a security deposit, and then the tenant continues to live in the flat without any formal lease agreement. The ownership and legal status of Pagri flats can be complex and may vary depending on local laws and regulations.It's important to clarify the legal status of the Pagri flat in terms of its rentability. If Pagri flats are not legally allowed to be given on rent in your area, you might need to address this situation. In many cases, renting out properties in violation of local regulations can have legal consequences. From a tax perspective, if you are indeed receiving rental income from your Pagri flat, you should be reporting it in your income tax return. You can offset this income by claiming deductions on expenses related to the property, such as maintenance, repairs, and property taxes. However, if the property is not legally rentable, there could be complications in terms of both tax and legal compliance.
Your grandson claiming HRA (House Rent Allowance) for the rent he's paying you might raise concerns if the property is not legally rentable. HRA is usually claimed when an individual pays rent to a landlord other than a close relative. Since you are his grandmother, the relationship might fall under the category of a close relative.
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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Jul 29, 2023

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Hi sir. Hope alls well with you n ur family. Sir i am a 75 year old lady living in south mumbai. I hav given my PAGRI flat of which I am BENIFICIARY OWNER / SOLE TENANT on rent to my grandson for 49,500 per month. He is claiming HRA on same. For proof he is submitting rent agreement between him and me on notarized stamp paper, Electric bill which is on my name for ownership proof of said flat, My Pan card and bank passbook xerox of both of us showing rent given by him and received by me, To his company. I am also filling my IT return and showing rent as my income. Now i hear that pagri flats cannot be given on rent. Hav no other source of income. Pls advise. Greatfully yours ZARINA.
Ans: Dear Zarina Ji,

I hope you are doing well. I understand your concern regarding the rental of your Pagri flat.

The Pagri system is indeed a unique and complex aspect of Mumbai's real estate. As per the information available, there is no specific clause in the Income Tax Act that prohibits the renting of a Pagri flat. However, the legalities surrounding the Pagri system can be quite intricate and may vary based on specific circumstances.

In your case, as you are the beneficiary owner and sole tenant of the flat, and you are declaring the rent as your income in your IT return, it appears that you are following due process. Your grandson is also providing all necessary documents to his company for HRA claim, which seems appropriate.

However, I would strongly recommend consulting with a legal expert or a chartered accountant who is well-versed in the Pagri system and its implications. This will help you ensure that you are in full compliance with all legal and tax requirements.

Stay healthy and safe.

Best regards
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Sushil

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Study Abroad Expert - Answered on Apr 25, 2024

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Dear sir, my brother was doing b pharm right now next year he will graduate,, please suggest what he will proceed after doing b pharm sir
Ans: Hello Lomina,

First and foremost, thank you for getting in touch with us. I am happy to hear that your brother is currently pursuing his Bachelor of Pharmacy (B.Pharm) and will graduate next year. To answer your question first, I would like to tell you that based on his interests and professional objectives, there are many career paths that your brother can pursue once he completes his degree. I would recommend that you consider the following:

Your brother can consider working as a pharmacist in retail pharmacies, hospitals, or community pharmacies. Remember that this is the most typical employment route for graduates of B.Pharm. Pharmacists provide medications, advise patients on how to take them safely, and other health-related services. If your brother possesses strong writing abilities, working as a medical writer, crafting content for regulatory bodies, pharmaceutical companies, or healthcare organizations, is one of the other jobs that he could choose from. Documents including clinical trial reports, regulatory filings, and instructional materials are created by medical writers. Your brother may choose to work as a hospital administrator, wherein he would be responsible for controlling pharmaceutical services in healthcare facilities, in turn, guaranteeing effective medication administration, and monitoring drug delivery networks. Another career path for your brother includes taking up a job as a clinical research associate (CRA) or working in other research-related roles in research institutions or pharmaceutical companies. Remember that in order to make sure new medications are safe and effective for use, this entails conducting trials to test them. He can also choose to work in drug safety and pharmacovigilance, checking if the medications sold are safe, looking into unfavorable incidents, and making sure safety rules are followed. Your brother can also take up a job in regulatory affairs, making sure that pharmaceutical items adhere to rules and norms established by regulatory bodies. This entails creating and submitting regulatory paperwork, verifying regulatory compliance, and coordinating with regulatory authorities. Your brother can also choose to work in quality control or quality assurance positions in pharmaceutical companies, making sure that products adhere to regulations and standards of quality. In addition to the above, I would like to let you know that your brother can also pursue further education, viz., a Master's degree (M.Pharm) or a Ph.D. in pharmaceutical sciences or associated disciplines. Remember that pursuing higher studies can lead to possibilities for teaching, research, or advanced roles in areas viz., pharmaceutics, pharmacognosy, medicinal chemistry, or pharmacology.

When choosing which career path to opt for upon finishing his Bachelor of Pharmacy (B.Pharm) degree, I would suggest that your brother takes into account his abilities, interests, and professional objectives. Lastly, I would like to say that acquiring practical experience through internships or entry-level work may prove beneficial, as this will allow your brother to investigate other career paths and learn valuable skills in the sector.

For more information, you can visit our website.
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