Hra exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 Pls share List of Documents to be collected by Employer to exempt the HRA in hands of Employee.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 December 2014 Following documents as proofs are required to be submitted in order to avail HRA exemption benefits.

Rent receipt from Landlord, Rent Agreement from Landlord and Landlord’s PAN details

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 Is there any threshold limit of Rent for getting Rent Agreement or It is compulsory for any amount of Rent?

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Rupesh Jain

Rupesh Jain (Expert)
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30 December 2014 at present if rent is paid rs. 100000/- in year then you have to collect the rent agreement and PAN of vendor.

you have to collect the rent receipts from the employee.

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 So it can be interpreted as if Rent is more than Rs. 1 Lakh PA then only Rent Agreement is Compulsory.

Manoj Kumar

Manoj Kumar (Expert)
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30 December 2014 The circular (08/2013) states that "...an employee claiming exemption from tax with respect to House Rent Allowance received is now required to report the PAN of the landlord to the employer, if the rent paid by the employee to the landlord exceeds Rs 1 lakh per annum, along with the rent receipt."

@VaibhavJ

@VaibhavJ (Expert)
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30 December 2014 It has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt.

It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.

If annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer.

In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Notification no. 17/2014

@VaibhavJ

@VaibhavJ (Expert)
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30 December 2014 So if rent paid upto Rs. 3000/- no documents to employer..

If Rent paid is in excess 3000, rent receipt is must but no need of PAN if annual rent paid by the employee does not exceeds Rs 1,00,000 per annum.

As far as rent agreement is concerned it is as per co. policy & there no requirement of IT specifically.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 Thanks to all. Mitesh, Rupesh, Manoj & Vaibhav.

@VaibhavJ

@VaibhavJ (Expert)
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30 December 2014 Appreciate your feedback..you can choose to click thank button instead!!