Regarding rent reciept for hra

This query is : Resolved

employeesforum (Querist)
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18 February 2012 i have heard that the employees, who are getting HRA upto Rs. 3000, need not to submit the receipt for the house rent paid to claim the deduction for the same in TAX.
IF this is true, would you please upload the concerned circular/letter etc. of the Department of Tax or Govt of Punjab. This will be beneficial for all .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 February 2012 Please refer CBDT Circular 5/2011 dated 16/8/2011.
Relevant portion of sub clause 9 of clause 5.2 is copied here under.

Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), 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.