Company provides free accommodation to the employees, if possible to exempt HRA from their salary structure?

Dear Experts, I have one query about HRA exemption,
Our company provides free accommodation to the employees, if possible to exempt HRA from their salary structure.
Let me know it's right or wrong sir.

sorry for the mistake ,
HRA exemption from their salary structure it is possible or not.

Regards
S.Praveen

When the company is providing free accommodation there is no question of payment of HRA.

When you have provided rent free accommodation to your employees, there is no allowance called House Rent Allowance in the salary structure and the question of its exclusion does not arise but the rental value of the same is a taxable income in the hands of the employees by way of perquisites. Obviously, the rental value of accommodation provided can be included in the Cost to Company.

Dear all

Thanks for your valuable feedback

I will add : HRA is a component of the structure of the salary. There is no law saying HRA has to be paid (except Maharashtra which says HRA of 5% is compulsory). So whether you give HRA or not is actually a strategic decision you do.

In case you are providing free housing, there is no question of HRA

many companies do have the option. You can opt for HRA or free housing.