14 February 2011
Dear All, Is rent agreement necessary for eligibility for HRA, coz as i am new in the company and the responsibility of setting the salary break ups was given to me, I hav specificed HRA allowance to each employee But now it came to my knowledge tat the employee has to submit the rent agreement then only he is eligible for HRA. Some employee hav submitted but the rest couldn't arrange for it so wat is the remedy??? pls help me out...
14 February 2011
The circular in this regard is not very clear. The responsibility has been vested on the officer, who is in charge for paying salary, to ensure that any benefit under IT is given to the employee on the basis of his/her fully satisfaction. So at the end of the day, the person responsible to deduct TDs, needs to satisfy himself & may be lateron, if needed, to the ITO too regarding the admissibility of such deduction to any such employee.