23 February 2011
Fact of the Case: X is a salarised employee of a company drawing HRA and get HRA exemption by paying Rent.Now the company transferred him to the project site providing taxfree accomodation while X still paying House Rent for Family.Please advise the Incometax tax treatment of HRA.
The Accommodation given by company on the project site is purely temporary in nature. The expenditure for providing accommodation should be accounted by the company as business expenses and not to be considered as perquisite in the head of employees. The employee can continue with the claim of HRA benefit