jignesh nagda (final c.a student) (25 Points)
25 July 2011Hi...................
I have a querry regarding house rent allowance.Case is such that a employee(mr.X) leaving in rented house.Rent agreement is between company(ABC CO) and lender(Y).company(ABC CO) pays part(say 70000) per month of the rent and part of the rent(say 30000)per month is recovered from the salary of employee(MR.X).can mr. X claim HRA on full amount of rs.1,00,000/-
Can somebody please suggest me and provide any ruling or any supporting .
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 25 July 2011
Hi, in my opinion RS 70000 being paid by the company will be perquisite in your hand by virtue of section 17(2) as your question can concluded as payment of Rs 100000 is being made by the company directly to the lender and deduction is being made from your salary.
No double benefit can be availed under the provisions of the incomtax act and therefore you can not claim for house rent allowance by virtue of section 10(13A).
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 26 July 2011
any amount paid by the employer on account of rent for employee amounts to perquisites and will be included in the salary by virtue of section 17 and when the amount is included, the same is eligible for deduction for HRA............
SHRIMALI
(ACCOUNTS MANAGER)
(48 Points)
Replied 16 October 2011
Hi
I want some querry regarding house rent allowance case is that the employee was entitled HRA of rs. 6500.00 P.M. from 1.04.10 to 31.08.2010. he was paying a rent of Rs. 7600.00 for a house in Delhi. With effect from 01.09.2010 he has been provided with accommodation by the company for which the company is paying the rent of rs. 5500.00 P.M.
The company recovered from him Rs. 1200.00 as rent for the Accommodation.
Can anybody suggest me
CAclubindia
