Dear Experts, I have one query about HRA exemption. Our company provides free accommodation to the employees. Is it possible to exempt HRA from their salary structure? Please let me know if this is correct or not. Thank you.
From India, Salem
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1From India, Salem
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sorry for the mistake , HRA exemption from their salary structure it is possible or not. Regards S.Praveen
From India, Salem
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From India, Salem
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When the company is providing free accommodation there is no question of payment of HRA.
From India, Mumbai
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From India, Mumbai
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Tax Implications of Rent-Free Accommodation
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. However, 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.
From India, Kannur
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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. However, 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.
From India, Kannur
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HRA as a Component of Salary Structure
I will add: HRA is a component of the salary structure. There is no law saying HRA has to be paid (except in Maharashtra, which mandates HRA of 5%). So, whether you provide HRA is actually a strategic decision you make.
In case you are offering free housing, there is no need for HRA. Many companies do provide the option. You can choose between HRA or free housing.
From India, Mumbai
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I will add: HRA is a component of the salary structure. There is no law saying HRA has to be paid (except in Maharashtra, which mandates HRA of 5%). So, whether you provide HRA is actually a strategic decision you make.
In case you are offering free housing, there is no need for HRA. Many companies do provide the option. You can choose between HRA or free housing.
From India, Mumbai
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