Harassment

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I am working in MNC and our accounts department,tat maintains pay roll as well is pressurising me to give affidavit for tax exemption against HRA,inspite of giving rent agreement which is in my dads name and rent receipt,as well as cheque details for rent paid.tthey are asking for affidavit.i have countered them against section 10(13A),still they are not in agreement.what to do?
Replies (5)

I think you can ask the Income-tax Authorities to intervene or let them deduct tax at source and you claim refund from the Income-tax Department when you file your return for the said Assessment Year.

Give tham a fake receipt!!!  Jokes apart!! You can claim it directly from IT department. If you are legally paying the rent then you can claim it 100% sure.

ASK YOUR EMPLOYER TO DEDUCT THE TDS AND YOU CAN CLIAM THE REFUND FROM INCOME TAX..

Why dont you submit a small affidavit as required and end the matter?

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.


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