HRA and company lease

This query is : Resolved

Aajay (Querist)
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26 October 2010 Can an employee claim the benefit of HRA where there is a company lease agreement (agreement between land lord and Employer Company for providing residential accommodation of employee) and monthly rent is being paid by company? But the rent so paid by company is being deducted from the salary of employee?
If yes ,then why this arrangement should not be treated as perquisite taxable in the hands of employee?.
What would be tax treatments in the hands of company and employees?
Thanks

Ajay

taxindiaconnect

taxindiaconnect (Expert)
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26 October 2010 IN case of commpany lease HRA benefit can not be claimed by the employee. Company has to consider the perquisite valuation and deduct tax on that value u/s 192.