Rent aginst HRA...VERY URGENT

CA CS CIMA Prakash Somani (Landmark Group) (23477 Points)

12 March 2008  

Dear friends,

My friend is getting HRA Rs. 10000 and he also having an option either to receive HRA in cash or Company will reimburse his Room rent upto Rs. 16,000.


So wether it will considard as perquisite?

 if yes than wht amount will considard as perquisite and in whose hands it will be taxed?


Reply in urliest opportunity......