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Taxation of house rent reimbursement

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Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2012 Iam working in a BAnk. My employer is giving House Rent Reimbursement (i.e.Amount actually paid only to the Owner along with monthly receipt of payment) of Rs.10000/- per month and Iam paying the same to the House Owner. But for Income tax purpose they are taking Rs.10000/- in gross salary instead of applying Sec:10(13A) stating that you are only reimbursing the Rent paid and we are not giving you any Allowance. As you are the officer sec:10(13A) is not applicable in your case. Hence the amount is fully taxable as a perquisite(i.e. exemption sec:10(13A)is not applicable).Please guide me to avoid the taxation.

Also they are asking proof to consider my view.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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08 April 2012 NO the same shll be taxable in your hands you can not be escape from the same. but yes you can take this as an HRA if your company agrees for the same then you can get benefit of certain amount...else the whole of the amount is taxable.

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