Is rent agreement is mandatory for hra exception

Rent receipt is enough to claim the HRA exemption ,and u can request to your DDO, please do not ask for rent agreement .On the reverse ,if employee has submitted a rent agreement only then DDO should ask for rent receipt as the rent agreement is not a proof of payment.


 

Thanks Deepali for your reply , but the person from my office HR dept. is saying it mandatory to submit Rent Agreement otherwise he wll detect the tax and also i will not get the HRA exception.

Did u provide him the rent receipt???

He is not accepting Rent receipt then final i asked to my landlord to provide me Rent Agreement. Now when i am giving him that rent agreement (Signed by Notary 11 oct 2012).. my HR person saying it is not valid , he required Notary stamp or sign of April month, 

I am really very much frustated , what should i do now?

He is absoulutely wrng..as i said earlier that rent receipt is the sole proof for the Hra exeption even  more than the rentr agreement...I think he is doing this coz he does not wants to give u exemption...or due to some personal; differences...

The employer should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the HRA or any portion thereof from the total income of the employee.

Though incurring actual expenditure on payment of rent is a pre requisite for claiming deduction u/s 10(13A), it has been decided as an administrative measure that salaried employees drawing HRA upto Rs. 3,000/- per month will be exempted from production of rent receipt. It may however be noted that this concession is only for the purpose of TDS and in the regular assessment of the employee, the AO will 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.

Further if annual rent paid by the employee exceeds Rs. 2,00,000/- pa it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord alongwith the name and address of the landlord should be filed by the employee.

Refer circular no. 8/2010 (F.No. 275/192/2012-IT(B)), dated 05-10-2012.

This is all about the procedure of HRA exemption but we are here talking about the rent agreement sir???Whether mandatory or not

Dear All,

Thanks for your replies..

Can you provide me summrized conclusion regarding this topic. Wheather this is mandatory for HRA eception ( Is there any offical rule has been given by Govt. of India or IT Dept.)

The expression on the estimated income of the assessee occurring in section 192(1) enables the employer to work out the estimate of income under the head Salaries in case of its employee. Final determination of income is to be made by the concerned AO in the case of the employee during the course of his assessment as an individual.

No where the circular puts onus on employer to insist on rent agreement.

In view of the above, unless provided by statute, the authority cannot be exercised.

Thanks again.

So can I tell the HR person that there is no rule for Providing the Rent agreement for HRA Exception.

And i will provide Rent Receipt for the exception.

One more Query ::

If the HR person not accept my rent receipt and detect my TAX , so can i got that amount by filling the Tax Return ?