Dear Seniors,
In my company, there are a few employees who are submitting house rent receipts in the names of their mother, father, and grandmother as investment proof for TDS deduction. Kindly advise if this practice is acceptable given the blood relation.
Awaiting your response.
Thanks,
Ravita
From India, Mumbai
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20In my company, there are a few employees who are submitting house rent receipts in the names of their mother, father, and grandmother as investment proof for TDS deduction. Kindly advise if this practice is acceptable given the blood relation.
Awaiting your response.
Thanks,
Ravita
From India, Mumbai
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Dear Ravita,
House rent reimbursement is given only in the name of the employee in TDS Calculation.
If any employee borrowed a housing loan, then a repayment schedule is required.
If anybody is the rent payee, then a rent agreement is required.
Particulars Earning Deduction Taxable
Salary 289400 289400
HRA 151250 151250
Conveyance 118350 9600 108750
Children Education Allowance 12000 0 12000
Special Allowance 18000 0 18000
Welfare Allowance 5000 0 5000
Total 594000 9600 584400
Deduction Under Section 80 C
P.P.F./ E.P.F. 2000
L.I.P. 32407
Saving Bond
NSC
Repayment of Principal of Home Loan
Infrastructure Bond
5 Year F.D.
ULIP
Total Deduction 34407
Taxable income from Salary 549993
Income From House Property
Deduction U/s 24 (b)
Interest paid on repayment of Home Loan 0
Taxable Income from house property 0
Income from Other sources
Total Taxable Income 549993
Computation of Income Tax
Up to 160000 160000 0 0
From 160000-500000 340000 10% 34000
From 500000-800000 47593 20% 9519
Above 800000 30%
Income Tax 43519
Education Cess 870
SHE Cess 435
Total Tax Deductible 44824
From India, Ramnagar
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House rent reimbursement is given only in the name of the employee in TDS Calculation.
If any employee borrowed a housing loan, then a repayment schedule is required.
If anybody is the rent payee, then a rent agreement is required.
Particulars Earning Deduction Taxable
Salary 289400 289400
HRA 151250 151250
Conveyance 118350 9600 108750
Children Education Allowance 12000 0 12000
Special Allowance 18000 0 18000
Welfare Allowance 5000 0 5000
Total 594000 9600 584400
Deduction Under Section 80 C
P.P.F./ E.P.F. 2000
L.I.P. 32407
Saving Bond
NSC
Repayment of Principal of Home Loan
Infrastructure Bond
5 Year F.D.
ULIP
Total Deduction 34407
Taxable income from Salary 549993
Income From House Property
Deduction U/s 24 (b)
Interest paid on repayment of Home Loan 0
Taxable Income from house property 0
Income from Other sources
Total Taxable Income 549993
Computation of Income Tax
Up to 160000 160000 0 0
From 160000-500000 340000 10% 34000
From 500000-800000 47593 20% 9519
Above 800000 30%
Income Tax 43519
Education Cess 870
SHE Cess 435
Total Tax Deductible 44824
From India, Ramnagar
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Ya, it is acceptable. They can show the house rent receipt as investment proof until the employee has their own residence, as per Section 10(13A) read with Rule 2A. At least three will be exempted.
House Rent Allowance (HRA) received:
- 50% of salary in case of residential accommodation taken on rent is situated in Bombay, Calcutta, Delhi, or Madras (Chennai), and 40% of salary in any other case.
- Rent paid in excess of 10% of salary.
From India, Gurgaon
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House Rent Allowance (HRA) received:
- 50% of salary in case of residential accommodation taken on rent is situated in Bombay, Calcutta, Delhi, or Madras (Chennai), and 40% of salary in any other case.
- Rent paid in excess of 10% of salary.
From India, Gurgaon
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W B Workmen's House Rent Allowance Act, 1974.pdf
Splliting of Miniumu wages in house rent.jpeg