HRA

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sohail (Querist)
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29 June 2010 If am employee is given
1)Rent Free Fully Furnished house(Quarters) then he can claim HRA
2)Charging Nominal Rent for Fully Furnished house(Quarters) then he can claim HRA
Please reply me in point wise and if the answer to point 1 is negative please refer me the section for disallowance and please mention the case laws relating to that

Please its very urgent

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 June 2010 Providing Rent free accomdation either free or nominal rent you need to calculate the Valuation as per perquisites valuation rules, in the both the cases HRA fully taxable

CA.Pujah

CA.Pujah (Expert)
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30 June 2010 A bit of confusion on the question.
Your question is whether u can claim HRA in given 2 situations
or
you can claim HRA Exemption in the above 2 situations.

1) whether u get HRA or not is as per ur terms of employment.
2) HRA exemption will not be available in any case.
3) Rent free/ concessional rental accomodation will be a perquisite taxable in ur hands.

sohail

sohail (Querist)
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30 June 2010 Thank You Pooja yes it was little bit of confusion .actually i wanted to know whether employer can provide both the facility Rent Free Fully Furnished house(Quarters) then he can claim HRA to same employee
1)if it is in terms of employment.
2)even if it is in terms of employment is there any provision in income tax act to restrict the employer not to do so.if yes please refer me case laws & Sections

Please give your suggestion

CA.Pujah

CA.Pujah (Expert)
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30 June 2010 It's upto the employer...employer & employee mutually decide CTC of the employee & form of payment as allowance or whatever is upto them. Logically I providing rent free accom, he should not give HRA as HRA is to facilitate employee to pay his house rent. But he can give so, Act doesn't restrict employer explicitly. But for you whether u get HRA or any other allowance it's same, i.e. fully taxable. Ask ur employer to pay same amount as some other allowance in which u can enjoy tax benefit, like medical reimb, or convey allow tele reimb, etc.
I m sure he would not mind. Logically also he will agree.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 June 2010 There is no statutory restriction on providing both by employer

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