As an employer can I accept receipt of Hostel fees paid by employees and consider it for exemption of HRA. Can anyone please specify the relevant sections of it
1 Replies
Jaishree Taori
(12 Points)
Replied 19 January 2018
As per sec 10(13A) of income tax act,HRA will be available up to the minimum of the following three options:
1.Actual HRA received from employer
2.Actual house rent paid by employee minus 10% of basic salary
3.50% of basic salary if employee live in metro city or 40% of basic salary if employee live in non metro city.
And employee can claim exemption of HRA if he stays in rented house & is in receipt of HRA from his employer.
So, as per above applicable sec you cannot claim exemption of HRA.
1.Actual HRA received from employer
2.Actual house rent paid by employee minus 10% of basic salary
3.50% of basic salary if employee live in metro city or 40% of basic salary if employee live in non metro city.
And employee can claim exemption of HRA if he stays in rented house & is in receipt of HRA from his employer.
So, as per above applicable sec you cannot claim exemption of HRA.
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