• Will leave and license agreement disallow my claim for exemption on rent paid

Sir,
I would be taking up a new house under rent for Rs.16500/- in Kolkata. The land lord is issuing a leave and license agreement with the word monthly license fee to be paid. I am a salaried person and eligible for HRA exemption. 
Will the word License Fee effect the HRA exemption.

Regards
Tanmay Ray
Asked 4 years ago in Property Law
Religion: Hindu

3 answers received in 10 minutes.

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14 Answers

You'll continue to get HRA Agreement.

License Fee and rent are synonymous

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

1) when you enter into leave and licence agreement you are mere licensee

2) you pay monthly licence fee to landlord

3)licence fee would not affect your HRA exemption

4) you are entitled to HRA exemption

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Yes you will be eligible for HRA exemption through leave and license agreement also to avoid future problem with department take copies of rent receipts and pay through bank cheque or net banking .

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

Yes, licenses fee used by land lord may curtail your right to claim HRA exemption.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

No, it will cause ni adverse impact in your HRA reimbursement eligibility.

In any event in west Bengal there is no legal sustainability of license agreement and irrespective of what is mentioned in place of teem tenancy or rent the license agreement in Kolkata is nothing but a premises tenancy agreement only.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Defensively under the Income Tax you may not get the exemption unless you explain the hole agreement is lease with respect to a house.

The HR should read the entire document before coming to the conclusion that what you are entering is the lease agreement termed as lease and license agreement otherwise the HR may deduct the heavy TDS.

Or instead you can terms the agreement into lease cum license agreement.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

Dear Client,

First you to understand the difference between leave and license agreement and lease.

Under license agreements, the legal ownership and the possession of the property remain with the licensor. Under a lease agreement, the tenant generally has exclusive possession with respect to the property. In other words, a license does not create any interest in the premises in favor of the licensee.

By executing license agreement, u will left at mercy of landlord, he can evict u any time.

WELL, no defect of word regards to HRA.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello,

If you are taking a house on rent for residential purposes then I do not think that the leave and license agreement will be a good idea. Your employer might not accept the same.

Ask you landlord to enter into a rent agreement of 11 months.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Hi, kindly share the rental agreement for better understanding ..

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

1) Ask landlord to mentioned wording like monthly rent, so you can get benefits of HRA in Income Tax.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

Yes it will

Subhendu Ghosh
Advocate, Barrackpore
234 Answers

4.0 on 5.0

1. The Leave and License arrangement for staying in the premises byt paying fees wil treated as paying rent for the purpose of exemption on rent paid.

2. However, you shall have to cover the entire 12 months with the L& L agreement and have receipts of the fees paid on that account.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

The licence fee is also one kind of rent as defined in law, hence the receipt obtained as licence paid receipt is also eligible for HRA benefits.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

Hi, these are related to local laws and it may not affect HRA exemption.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

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