HOUSE RENT
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 August 2010
EMPLOYER PAID RENT TO EMPLOYEE OTHER THAN SALARY. AND EMPLOYEE PAID HIS RENT TO OWNER. CAN WE CONSIDER THIS PAYMENT AS A PERQUISITES? AND CAN EMPLOYEE GET EXEMPTION U/S 10 HOUSE RENT ALLOWANCE AGAINST WHICH HE PAID RENT TO OWNER.
CMA Ramesh Krishnan
(Expert)
03 August 2010
If the salary part having HRA component you can calculate HRA exemption otherwise you need to calculate as perquisite valuation
03 August 2010
Rent amount paid by employer to employee can be treated as HRA allowance.
Suppose, in addition to above the employee is also receiving a separate HRA component in his monthly salary then HRA can be treated as the sum of (HRA component with salary + Rent amount paid by employer to employee)
After this you can claim HRA benefit under section 10.
That's one way of doing it....
Otherwise you can treat Rent amount paid by employer to employee : as perquisite.
Suppose, in addition to above the employee is also receiving a separate HRA component in his monthly salary then HRA can be treated as the sum of (HRA component with salary + Rent amount paid by employer to employee)
After this you can claim HRA benefit under section 10.
That's one way of doing it....
Otherwise you can treat Rent amount paid by employer to employee : as perquisite.
Murtaza I Bhagat
(Expert)
03 August 2010
agreed,And also HRA Exemption is been decided by Calculation u/s 10 (13A). if no exemption then treat rent as perquisite.
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