Dear All, Greetings! I am working as an HR manager in an IT company in Indore. it is an owner based company. I would like to know if rebate on TDS can be given if an employee shows up rent agreement?
My company deducts TDS on employee's salary every month and few employees are claiming tax rebate upon HRA but Management is not agreeing for the same. my question here is- if i show my House rent agreement to the company, am i eligible to get relaxation on TDS?
Regards,
Astha
From India, Indore
My company deducts TDS on employee's salary every month and few employees are claiming tax rebate upon HRA but Management is not agreeing for the same. my question here is- if i show my House rent agreement to the company, am i eligible to get relaxation on TDS?
Regards,
Astha
From India, Indore
Employees can give the declaration first about the rent payable. So, that monthly TDS can be calculated based on the self declaration of employee. They can submit the document proof in the month Jan for that FY.
Only the Original Rent Receipts will be considered as document evidence. If the rent is more than Rs. 1,00,000 per annum then PAN Number of the Owner should be given.
From India, Chennai
100Only the Original Rent Receipts will be considered as document evidence. If the rent is more than Rs. 1,00,000 per annum then PAN Number of the Owner should be given.
From India, Chennai
Thank you so much Mr. Sarvanan. What can I do if management is not agreeing upon this? I have already told this rule to management but then also Management is asking to deduct TDS. And employees are very demotivated because every month some amount is getting deducted from their salary in form of TDS after showing the original rent agreement.
From India, Indore
From India, Indore
Hi
HRA allowance provide by employer to its employee to meet the cost of house rent is subjected to deduction u/s 10(13A) of income tax act. 1961 provided that employee must residing in rental house and the house must not owned by employee however as per CBDT circular 8/2013 if rent paid by employee is exceed 1 Lakh the PAN No of landlord shall be given to employer by employee. Since it is the statutory deduction if employee eligible under this sec 10(13A) to avail the deduction of HRA therefore employer cannot deny to provide this deduction also cannot deduct excess TDS. Else you can even claim the HRA exemption if eligible while filing the income tax return if No HRA exemption was given by employer?
Thanks & Regards
V SHAKYA
HR & Labour Laws Advisor
From India, Agra
HRA allowance provide by employer to its employee to meet the cost of house rent is subjected to deduction u/s 10(13A) of income tax act. 1961 provided that employee must residing in rental house and the house must not owned by employee however as per CBDT circular 8/2013 if rent paid by employee is exceed 1 Lakh the PAN No of landlord shall be given to employer by employee. Since it is the statutory deduction if employee eligible under this sec 10(13A) to avail the deduction of HRA therefore employer cannot deny to provide this deduction also cannot deduct excess TDS. Else you can even claim the HRA exemption if eligible while filing the income tax return if No HRA exemption was given by employer?
Thanks & Regards
V SHAKYA
HR & Labour Laws Advisor
From India, Agra
Let me suggest you in simple words. I don't know whether your employer is not accepting only the Rent Receipts or all the investment proofs for 80C, 80D and so on. If they accept everything except Rent Receipts then you need to find the reason for this from them. If they don't accept all, then I think they are not taking the responsibility of collecting the document proofs for the TDS Deductions.
As rightly suggested by @Shakya, your employees can claim the refund of all deductions during income returns filing in the end of FY.
I suggest you to co ordinate with Finance Manager (if available) in your organization and seek his/her help to solve this issue. He/She may give you support to convince the management.
FYI, Rental Agreement can be accepted by employer for HRA Exemption, after verification of original.
From India, Chennai
As rightly suggested by @Shakya, your employees can claim the refund of all deductions during income returns filing in the end of FY.
I suggest you to co ordinate with Finance Manager (if available) in your organization and seek his/her help to solve this issue. He/She may give you support to convince the management.
FYI, Rental Agreement can be accepted by employer for HRA Exemption, after verification of original.
From India, Chennai
Dear All,
Thank you so much for your reply. @Mr. Sarvanan, There is no financial manager in this company, there is only one accountant. And he does whatever the director (Owner) says. Even though I have shown all the rules to them, I don't know why they are not agreeing upon this.
Regard,
Astha
From India, Indore
Thank you so much for your reply. @Mr. Sarvanan, There is no financial manager in this company, there is only one accountant. And he does whatever the director (Owner) says. Even though I have shown all the rules to them, I don't know why they are not agreeing upon this.
Regard,
Astha
From India, Indore
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TDS circular.pdf
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BASICS OF TDS ON SALARY-1.doc