Hra and accomodation provided
This query is : Resolved
jubin mehta
(Querist)
04 April 2013
My query is as follows:
1. A person is being paid HRA by the employer. The employee decides to opt for accommodation provided by the employer. Now, the employee is not getting the HRA and the value of accommodation is being added to the salary of the employee @ 15%
The above situation is resulting in double tax as the employee is not getting any allowance and secondly the value of perq is being added to salary hence additional tax burden. Am i right in thinking so?
Kindly clarify if any income tax rules apply in such situation ??
1. A person is being paid HRA by the employer. The employee decides to opt for accommodation provided by the employer. Now, the employee is not getting the HRA and the value of accommodation is being added to the salary of the employee @ 15%
The above situation is resulting in double tax as the employee is not getting any allowance and secondly the value of perq is being added to salary hence additional tax burden. Am i right in thinking so?
Kindly clarify if any income tax rules apply in such situation ??
CMA Ramesh Krishnan
(Expert)
17 July 2013
Since you are covered under rent free accommodation, No HRA component. either one is allowed under act for exemption
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