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Income tax

447 views 1 replies

M.S.Nathan

service

75 Points Posted on 22 December 2010

For claiming HRA exemption , submission of rent receipt is sufficient or submission of rent receipt along with rent agreement with land lord is required.

If salary disbursing officer is asking for rent agreement , whether he is right ?. In some of the cases there is no rent agreement with the land lord. (only oral agreement ). In such cases what is the solution ?.

As per income tax rules, whether submission of rent agreement is compulsory ?.

Clarification will be highly appreciated.

regards

S.Devi Jegatha

Replies (1)

B. Umapathy

student

405 Points Posted on 22 December 2010

Incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under seciton 10(13A). The employee should submit a written statement to the employer pinpointing rent paid by him, name of the landlord address of the property taken on rent along with rent receipt given by landlord. However, the Board has decided (as an administrative measure) that if HRA is Rs.3, 000/- p.m. (or less than that), the employer will give exemption on the basis of a declaration given by the employer(no need to submit rent receipt). This concession is only for the purpose of tax deduction at source, and in the regular assessment of the employee, the Assessing officer wil be free to make such enquiry, as he deems fit, for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.

I think u r clarified.

however, waiting for other CCItes reply.

regards

UMAPATHY. B