I work in an MNC in Bnagalore and its time to submit proofs for tax calculations. I have a query regarding proof required while claiming HRA exemption. According to the guidelines published from our finance department:
a) Original Signed rent receipts are required.
b) If rent paid is less than 3000pm, then a declaration by the employee stating the amount of rent paid and details of owners are sufficient. A copy of rent receipt signed by landlord is also acceptable.
c) If rent paid is more than 3000pm and less than 6000pm, then rent receipts for all months are required.
d) If rent paid is more than 6000pm, then all rent receipts and rental agreement is also required. Also, the payment should be through cheque only. In case electronic transfer is used, bank transaction reference number is to be quoted.
e) In rent paid is more than 9000pm, then in additiona to above, PAN number of land lord is also mandatory.
I wish to ask if a company can make any rule like this and are these valid as per the prevelant laws? Any guidance on this would be helpful.
Thanks.
CAclubindia
