HRA & Accomodation provided to epmloyees


This query is : Resolved 

(Querist)
04 January 2008 When accomodation is provided by the employer and the same is charged to the employee, How the HRA will be treated?

And can the accomodation charges be shown as rent paid for exemption u/s 10(13A)?


Amit (Expert)
04 January 2008 When accomodation provided by an employer and same is charged to the employee than also HRA exemption will be available as per limits under section 10 (13A). Rent paid to emplyer will be treated as Rent paid for exemption u/s 10(13 A)

04 January 2008 Hi Purvi,

There is a difference between an allowance and an accommodation. If a company pays you a fixed sum of money towards HRA, exemption on the same may be claimed u/s 10(13A).
If a company provides you accommodation, the same shall be treated as a perquisite, valuation on the same shall be done under Rule 3(1).


Rgds/
Vineet

04 January 2008 Hi Purvi,

There is a difference between an allowance and an accommodation. If a company pays you a fixed sum of money towards HRA, exemption on the same may be claimed u/s 10(13A).
If a company provides you accommodation, the same shall be treated as a perquisite, valuation on the same shall be done under Rule 3(1).


Rgds/
Vineet

04 January 2008 Hi Purvi,
In my opinion HRA is totally taxable and accomodation provided by employer is taxable @ 15% or 20% of salary less rent paid to employer.
Regards,
Sandeep


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