26 June 2012
Dear friends, pls anybody can let me know the solution for the following. A non resident is engaged in india in employment.He has been giving HRA and other allowances.But he is staying in a star hotel and claiming the Hotel rent for HRA purposes.is it correct?What an employer should do for this? whether hotel expenses is considerable for calculating exemption for HAR.
26 June 2012
Agreement is must if the amount of rent paid is in excess of Rs. 180000 and PAN is also mandatory for such transactions. In my personal opinion, he should enter into an contract with hotel for staying there on regular basis and for claiming HRA exemption.