HRA Vs Interest rebate

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I and my spouse jointly own a house in the city, where I work. We purchased this house in 2011 after raising loan from bank. Since my spouse don't have any income, I am paying emi and claiming full interest rebate.

Now I wish to claim hra rebate by paying rent for this house to my spouse. I also wish to claim half of the interest rebate.

Is this permitted in law and if yes, what action is to be initiated.

Regs Narinder

1 Answers

Its not allowed to pay house rent to your spouse. It would be a sham transaction and if caught, legal action can be taken by IT department.

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