CA Day celebration 2024 Easy Office
LCI Learning

Urgent ...

This query is : Resolved 

14 March 2013 I am Government Servent residing in Staff Quarters. So, I am not getting my HRA as per rules.
Our Institute directly cuts Rs. 150/- p.m. under 'House Rent' from my monthly salary slip.

Can I get tax exemption for my already paid amount (i.e. Rs. 150/- x 12 months = Rs. 1800/-)? as I am not getting these money in my hands.

Rather, as I understand, Institute takes this amount as their income - so tax should be paid by them.

Pelase resolve this query with authenticity for benitif of our entire staff.

14 March 2013 Hi

You would not get any benefits for house rent recovered from your salary.

In fact, you need to pay tax on perquisites value for concession in accommodation provided by the government.

Perk value is calculated as under:

(Licence fee for such quarter) minus- (amount recovered from employee (Rs.150 in your case)

Your employer would be taking care of this and you do not need to worry at all.


15 March 2013 Dear Mr. Mishra,

Thank you very much for your prompt reply.

As I undedrstand, the amount what I am not getting as my HRA, (which is 10% of salary in my case) they have already recovered from me!

Additionally, Govt. is taking Rs. 150/- from me as 'House Rent'. Further, it is an income for my employer, so they have to pay tax on 'their' income.

Also, in previous year, I was been given form 16 from my employer clearly indicating the entire amount (i.e. Rs. 1800/-) as - (minus) 1800/- brfore calculating gross total income, but I don't know why they are denying the same for this very year?

Please guide as it is a case of mass employee.

Thanks for your interest and valuable suggestion.


17 March 2013 This is not an income for employer as they must be adjusting the amount with license fee payable for such quarters.

I think in previous year, first they included accomodation perk for 1800 in your taxable income and shown a recovery from you for same amount. This means nothing had been charged to you as RFA perk. ( this is how it works).



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries




Answer Query