Rent slip against HRA by an employee

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This query is : Resolved

varun gupta (Querist)

20 May 2009 Are there any statutory requirements which a company shd consider while its employee submits Rent Slips for claiming HRA exemption?

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)

20 May 2009 The employer has to consider whether the rent paid based on the area where he was residing is reasonable or not.

In case of doubt it is better to receive a confirmation letter from the employee, stating that the particulars given by him are true and correct.

varun gupta

varun gupta (Querist)

21 May 2009 A company has hundreds of employee residing in different areas. Its practically not possible to go & check whether Rent amt is reasonable as per area he is residing and type of house he has taken on rent. As for confirmation, he states the amt in the declaration duly signed.
So, will there be any Statutory requirement or its all upon company's internal policy?

CA Kishore Tallam

CA Kishore Tallam (Expert)

02 April 2012 No statutory requirements are there while the employee submits rent paid receipts. one thing the employer should see is whether the employee declared the same or not?

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