Rachit (Analyst) (913 Points)
18 February 2013In respect of claim of HRA exemption u/s. 10(13A) is there any limit on cash payment of rent actually paid by employee.
In other words can an employee provide rent receipts of rent actually paid in CASH, amounting to more than Rs. 20,000/- per month.
Further, is it mandatory on the part of the company to take Leave and Licence agreement copy as a supporting in addtion to rent receipts for allowing HRA claim???
CA Suraj Lakhotia
(IndigoLearn)
(4898 Points)
Replied 18 February 2013
There is no limit of paying rent by cash.
The company may ask you lease agreement for authenticity of rental payment.s
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 18 February 2013
agreed with the expert
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 18 February 2013
Rachit
There is no limit on cash payment as pointed out by other friends. However, in case rent pay out is more than 15,000/- month, the payer has to declare the PAN of rent receiver/landlord to the employer company for TDS calculation on salaries.
Regards,
CAclubindia
