Authentication of rent receipt by employer for hra

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2016 Dear All
One of employee has provided us the rent slip to claim the deduction of HRA pls clarify since we are deductor is it our responsibility to authenticate the rent receipt also provided by employee in case if HRA exemption has been given in form of providing fake rent slip by employee. Then any consequence of for employer?

Pls suggest..

Regards
Mukul Jain

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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22 December 2016 It is not the employer responsibility to verify the authenticity of HRA receipt. Employer is only responsible for collection of receipt and keep it in record for future reference on that basis it provide the exemption.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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22 December 2016 Agree with sunilsir, the only thing is to responsible to employer is the calculation of HRA exemption.

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VIPIN GUPTA

VIPIN GUPTA (Expert)
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22 December 2016 Sir you can download form 12BB and get it signed by employee for future reference

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2016 Sir
Pls clarify the following.
1) weather HRA exemption can be given on the behalf of rent agreement

2) weather employee can obtain certificate for lower/nil tds deduction u/s 197 of income tax act.

3) will i have to keep original rent receipt for further reference or the copy of rent receipt

Pls clarify.......

Expert : Anonymous

Expert : Anonymous (Expert)

04 January 2017 Rent agreement is a documentary evidence of living at a particular location on specified rent whether you continue to live there is proved through rent receipt. Salary is covered u/S 197 see rule 28 and 28AA . you can keep photo copy of rent receipt as original will be submitted to your office