facing problems

Pallavi Bhosale · #1 13-08-2009, 10:39 AM

Hi,
As I am a member of cithr since one month past I had posted two queries till date but i din't get any response for it nor they are displayed on the site. So please guide me in this situation...

kumaracme · #2 13-08-2009, 10:51 AM

where is your queries ?

Pallavi Bhosale · #3 14-08-2009, 10:39 AM

Thank you for replying, actually the query is:
Actually we are allowing HRA along with basic to our company employees, I wanted to know weather it is necessary that the employee should submit the rent agreement or rent receipt? if yes what about the employees who don't stay in rented house?

ashok_6984 · #4 14-08-2009, 12:41 PM

Hi Pallavi,

As per the Income Tax act, the HRA exemption should be allowed only to who have the same allowance in their salary structure. For exempting the HRA allowance, the concern need to get a rental agreement or receipt from the employee. The employee's who has staying in his own house can't able to get the exemption. They can get exemption u/s 80c if they have the housing loan for the same property.

regards,

Ashok.

Pallavi Bhosale · #5 17-08-2009, 10:09 AM

Thank you Ashok! But if the employee is not under tax bracket then? Is it fine if the company includes HRA in his salary???

ashok_6984 · #6 17-08-2009, 10:30 AM

Hi Pallavi,

Including the HRA in salary structure is company policy. It will be vary for each company. For the under tax bracket employee, u can accept the HRA bills for whom the HRA allowance in salary structure. But keep concentrate on the annual total taxable income would not be get into negative. It will be problem in issuing the Form 16 at the year end. Income tax authority would not accept the income in negative.

My better suggestion is not required to get the proof for those employees ( under the tax bracket).

Regards,

Ashok.