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HRA - Rent Receipts

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Narasimha Rao

53 Points Posted on 10 May 2007

Hi All,

I need a clarification with respect to Tax Deduction at Source for Salaries.

As an employer (responsible for deducting tax at source), do i need to collect all the 12 months rent receipts from our employee? Or Original Rent receipt of one of the months during the FY is enough?

One of my friends is saying the employer needs to collect all the 12 months Rent receipts from the employees whoever claims HRA exemption.

Please advise.

Best Regards
Narasimha

Replies (2)

Subodh

16 Points Posted on 10 May 2007

below rs.2500/- u need not to submit

gaurav

stu

13 Points Posted on 18 May 2007

Your freiend is correct.Actually, the person responsible for issuing form 16 should ensure that he gives true information in form 16.Since payment of rent by employee affects his amount of HRA exempt, hence it is advisable on the part of the person issuing tds certificate to ensure that he has paid the same rent that is used for computing exempt HRA.Negligence regarding the same may cause hardships for the employee in taking the credit of Tds certificate. IF your problem is solved the reply me on my email id. U can share any of your query with me. My email id is advisory.gaurav @ gmail.com