Hi,
I am a salaried employee working in with an organization in Bangalore. Having just moved here, I need to rent a place to stay. My company has offered me two options:-
a) Take up the accomodation myself and claim relevant HRA. I will have to pay the deposit to the owner
b) Sign-up for a company lease. In this case, my offer letter will be restructured so that the HRA in salary structure is only Rs. 15,000. The rent will be deducted from my salary and paid to the owner. The deposit to the owner will be paid by the company.
Which option is better so that I can minimize my net-loss on tax paid.
(HRA claimed + paying deposit OR Perk-tax+Intrest from deposit)
Also, for the 15,000 that remains in the HRA, will I be able to claim any HRA deduction on that against the amount being deducted from my salary towards the monthly lease?
Details (all figures annual):-
| Salary Head | Amount | Rent Head | Amount |
|---|---|---|---|
| Basic | 9,96,700 | Rent | 3,60,000 |
| HRA | 4,98,350 | Deposit | 3,00,000 |
| Pers. Allowance | 22,33,900 | House-type | Unfurnished |
| Conveyance | 9,600 | Nature of house | Not company owned |
| Child Education | 2,400 | City | Bangalore |
| Hostel | 7,200 | ||
| LTA | 48,000 | ||
| Bonus | 4,00,000 | ||
| City | Bangalore |
Do let me know if you require any other details. Please respond soon. I need to finalize this by day-after.
Thank you!
CAclubindia
