FORM 16 - RENT & CONVEYANCE

Tax queries 1941 views 2 replies

Rajeev Nair

Finance Professional

510 Points Posted on 22 June 2009

Hi all -

Kindly guide on the subjected query -

Under which section the amount of RENT paid by an employee should be mentioned in FORM-16

Rent slips are enclosed, some of the employees do not have an agreement-in this case exemption can be given ?

Conveyance paid up to Rs.800/- is exempted while calculating payable Tax - if yes, pls.mention the relevant section

Thanks in advance -

Replies (2)

CA.Nikhil Gupta

PRACTICE

768 Points Posted on 22 June 2009

Form 16 shows your income earned, savings made and tax calculations. It wont reflect rent paid,

However rent paid is used to calculate the HRA exemption u/s 10(13A) if the same is recieved by employee and if no HRA is recd, he can claim the deduction under section 80 GG for rent paid. thus rent paid would indirectly reflect into Form 16 in both ways.

Rent reciepts are sufficient to claim the exemption and they have to be submitted to the employer so that the benefit can be given in form 16.

Conveyence allownce is exempted u/s 10(14) of income tax act. The limit of 800/- is for transportation allowance and not cvonveyance allowance.

Guest

Originally posted by :CA.Nikhil Gupta
"	Form 16 shows your income earned, savings made and tax calculations. It wont reflect rent paid, However rent paid is used to calculate the HRA exemption u/s 10(13A) if the same is recieved by employee and if no HRA is recd, he can claim the deduction under section 80 GG for rent paid. thus rent paid would indirectly reflect into Form 16 in both ways. Rent reciepts are sufficient to claim the exemption and they have to be submitted to the employer so that the benefit can be given in form 16. Conveyence allownce is exempted u/s 10(14) of income tax act. The limit of 800/- is for transportation allowance and not cvonveyance allowance.	"