Is agreement copy reqd for claiming hra deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2013 Our company is providing House Rent Allowance to its employees. One of our employees wants to claim this as deduction and says that the rent is paid by him to his father as the house in which he stays is in the name of the father. Now is HRA admissible for rent paid to the parent by a son/daughter? Also, is agreement copy required to be asked by our company? If HRA is admissible then what is the liability of our company if any employee does so?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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02 February 2013 To allow HRA exemption it is required to proof for the payment of rent and the actual or blood relationship between owner and tenant not important. To proof for payment of rent required rent paid receipts or rent paid certificate from the owner with his/her pan no and the address of the rented house. And the risk related to payment of rent and truthfulness in payment of rent totally with the employee only. On the basis of rent paid proof employer shall consider the HRA exemption it only the responsibility of employer to collect rent paid proof. As well as according to me agreement is not proper evidence or proof because it may be changes or cancel or eventhough agreement may not be pay rent etc....... reasons.

So you can allow HRA exemption on the basis of providing of rent payment proof of receipts/certificate along with PAN no of the owner and the sign of the owner should be on revenue stamp of the receipt and address of let-out property.

OM SAI SRI SAI JAI JAI SAI

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