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Rent aginst HRA...VERY URGENT

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)

12 March 2008

Dear friends,

My friend is getting HRA Rs. 10000 and he also having an option either to receive HRA in cash or Company will reimburse his Room rent upto Rs. 16,000.

So wether it will considard as perquisite?

if yes than wht amount will considard as perquisite and in whose hands it will be taxed?

Reply in urliest opportunity......

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7 Replies

(Guest)

i think this is taxable in hand of employee and this is hra amount. when you confirm than reply me also

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Revathi K Poojari (C A ) (54 Points)
Replied 12 March 2008

If Co. is goin to reimburse it'll will taxable in hands of Co.on which co. has to pay FBT. (i.e on Rs.16000/-)

(Guest)

No, whether the company will reiumburse or it is paid to employee, the HRA is taxable in the hands of Employee, if the company will reiumburse, then it will come under the perquisites and the same is also taxable (i.e. Furnished, Non furnished accomodation etc.) I think, please correct if I am wrong.

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 13 March 2008

you mean to say tht Rs. 16,000 will be taxable in the hands of employee as a perquisite?

CA. Ramesh Babu Muriki (CA-Practice) (25 Points)
Replied 13 March 2008

Be clear, house rent paid by the company means, whether house accomodation provided by the company or not. It means lease deed should be in the name of company only.

If the Company provides the accomodomation. it will considered as taxble perquisite is 20% of salary or Rent paid by the employer which ever is lower.