Is rent agreement is mandatory for hra exemption

This query is : Resolved 

12 October 2012 Hi,

This is kamal , I am working in Software Development company in Gurgaon. I Have one query regarding HRA Exception.

Is Rent Agreement is mandatory for HRA Exception, is their any written communication regarding this rule by Income Tax Department ?

Thanks
Kamal

12 October 2012 Dear Kamal

For Income tax point of views there is no requirement of having Rent Agreement for claming HRA exemption. Based upon Rent receipts employer can provide HRA exemption to employees. In case your income tax return selected for scuritny then jurdictional assessing officer has power to demand Rent agreement for allowing HRA exemptiom. But chances of selection of salary class employees are very less.

12 October 2012 Thanks for your quick response.

But my HR person is forcing me to get Rent Agreement, Can you tell me what should i don in this case, Otherwise he is saying he will detect my tax and don't provide HRA exception.

12 October 2012 Rent agreement is not mandatory as a corollary to sub clause 9 of clause 5.3 of circular 8/2012 dated 5/10/2012 which can be accessed at www.incometaxindia.gov.in

12 October 2012 Thanks alot sir..

12 October 2012 Sir one more query :

If the HR person not accept my rent receipt and detect my TAX , so can i got that amount by filling the Tax Return.

12 October 2012 Yes. 10(13A) can be claimed through return filing.


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