For claiming HRA, is the rent paid to be considered on accrual basis or cash basis? In other words, should we consider rent receipts date or for which period the rent applies. For example for the FY April 1, 2014 to March 31, 2015 - if the employee pays rent in the following month (March rent paid on April 5), then should we take:
(1) rent receipts for the occupancy period March 2014 to Feb 2015, which will have receipts dated between April 2014 to March 2015? OR
(2) rent receipt for the occupancy period April 2014 to March 2015, which will have receipts dated between May 2014 to April 2015?
Thanks for your advice.
(1) rent receipts for the occupancy period March 2014 to Feb 2015, which will have receipts dated between April 2014 to March 2015? OR
(2) rent receipt for the occupancy period April 2014 to March 2015, which will have receipts dated between May 2014 to April 2015?
Thanks for your advice.