Manger
35 Points
Joined October 2008
It is necessary for granting the exemption under section 10(13A) that the employee should have actually incurred the expenditure on rent. For purposes of deduction of tax it should be ensured that the employee concerned has in fact incurred the expenditure on rent. The payment of rent should be verified through rent receipts in the cases of all employees.House rent allowance paid to a person, who is living in his own house or in a house for which he does not actually pay any rent, is not exempt from tax in any circumstances.
In your case the agreement is made on your father's name & due to this reason the a/c's dept is asking you to provide them with an affidavit that House rent expenses have been incurred by you.