10 October 2009
An employee has 2 employers, one is providing house at concessional rent & the other is providing House Rent Allowance. What will be the taxability of the HRA provided by the 2nd employer? Can employee claim exemption under both the cases?
12 October 2009
But when exemption of HRA is calculated, then on third point there is a conditin of rent paid - 10% of salary, then we can take this rent because we had actually paid rent.
22 October 2009
I am not yet convinced.... There are 3 conditions when exemption is not granted u/s 10(13A) and they are :-
1. When the assessee stays in his own house. 2. When he does not pay any rent or incur any expenditure towards rent. 3. When rent paid is less than 10% of salary.
These 3 conditions are not satisfied in my query... So plz reply after onsidering this....
09 November 2009
Section 10(13A) exempts from tax only the allowance granted by the employer to meet expenditure already incurred on payment of rent for the residential accommodation occupied by the employee. The limits for the purposes of exemption of house rent allowance under section 10(13A) have been laid down in rule 2A. Though for purposes of grant of house rent allowance, a rent receipt may not be insisted upon by Government, it is necessary for granting the exemption under section 10(13A) that the employee should have actually incurred the expenditure on rent. For purposes of deduction of tax, therefore, the disbursing officer should ensure that the employee concerned has in fact incurred the expenditure on rent. The payment of rent should be verified through rent receipts in the cases of all employees. i think now u r satisfied with answer
CAclubindia
