HRA when Rent free accomodation is provided

This query is : Resolved

N.GOVIND (Querist)
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28 November 2008 Dear Sir/s

If the employer has provided Rent Free Accommodation (RFA) to en employee and the employees family is staying in a rented accommodation in different city in the same State owing to education of Kids or locational facilities.

1) The Employee can claim HRA exemption even though he has been provided RFA by his employer.

2) While adding Perquisite towards RFA, the employer should consider HRA exemption.

Please clarify.
Thanks.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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28 November 2008 In my opinion, It cann't be possible.

CA. Shushil Kumar

CA. Shushil Kumar (Expert)
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04 May 2011 Living in the house does not matter (In case of RFA).
The company provided accommodation is taxable as a perquisite even if you do not actually occupy it and the same is taxable.
However in case of HRA, you must stay in the rented house for which you pay the rent.

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