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.
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
CAclubindia
