My client has various companies under one group. The employees are employed under all these companies. Thus the employees are employed by multiple employers. One such company is providing basic salary and HRA to an employee. The other companies are providing only basic salary.
for calculating the HRA exemption, should we consider the basic salary from all the employers or only that employer who is providing the HRA.
Please note that in case of house perquisite valuation, the law requires to consider salary from all the employers ie. including such employers who have not provided the perquisite.
I need to clarify should the same logic be applied in case of HRA exemption.
If rest of company was not providing him HRA, HRA benefit could not be passed to him through Form 12BA which mentions Taxable & exempt Income of Previous employer.
17 September 2013
thanks for the reply, but i think still there is a confusion. There is no previous employer
An employee is simultaneously employed with three companies. Two are paying him basic salary and the third is paying him basic + hra.
He has rented a house and has valid rent receipts.
Now the third company wants to calculate his hra exemption. In this respect should the third company also consider the basic salary earned by him from the other two companies.
Under salary payment there exist employer & employee relation. So for all three company new appointment letter was issued? New employee ID was created?
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