House perquisite

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Dear Sir,

A company is providing a rented accomodation to one of its employee. The rent is directly paid by company to landlord. For some months the amount paid as rent is recovered from the employee.

While calculating the House perquisite valuation, the amount recovered from employee will be reduced from total value of perquisite.

Please advise whether can the employee also claim the HRA benefit for the amount recovered by the company ( apart from reducing it for house perquisite valuation.)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 August 2013 Since employer provided rent free accommodation, HRA benefit cannot claim. only what ever value arrived for Rent free accommodation from that we can deduct the recoveries