Dear Sir,
In our organization one of our employee is claiming HRA for the FY : 13-14 and his wife is also working in other organization and she is also claiming HRA for same value. Please kindly advise me how I consider my employee\'s HRA claim in this regard. Please send me your valuble suggestion and any supported documents.
with regards
Vijay Kumar Dasari
From India, Visakhapatnam
In our organization one of our employee is claiming HRA for the FY : 13-14 and his wife is also working in other organization and she is also claiming HRA for same value. Please kindly advise me how I consider my employee\'s HRA claim in this regard. Please send me your valuble suggestion and any supported documents.
with regards
Vijay Kumar Dasari
From India, Visakhapatnam
Dear Vijay
Is your organization a government body ??
What does the Terms and Conditions of employment of your organization speaks about HRA ??
Does your employee fulfill these criteria ??
How are you / your organization concerned where your employees spouse is working and what perquisite he or she is receiving as per the terms of that organization ??
Is the company where the employees wife is working, under your control ?? Or, is a subsidiary or sister concern ??
How can you stop the wife working in another organization from taking HRA ??
Or, is it your intention to DEPRIVE YOUR EMPLOYEE OF HRA even if he fulfills all the requirement for being eligible for getting HRA ??
Such rules are there WITHIN AN ORGANIZATION where both the employee and his spouse is working.
This is not the case here; so it would be better if you could answer the ABOVE QUESTIONS and EXPLAIN YOUR AUTHORITY in terms of HRA for his wife in another Organization - whether that other organization has EMPOWERED you to decide or DICTATE the terms of HRA in THEIR ORGANIZATION ??
If its so, whether you are receiving any compensation/salary from THAT OTHER ORGANIZATION ?? Have your organization allowed you for this ??
Before taking any action against your employees, you should make sure of your empowerment or limitations.
When you answer the ABOVE QUESTIONS, you will be able to understand whether your PROPOSED ACTION IS MALAFIDE (done with bad or doubtful intention) OR BONAFIDE !!!
Warm regards.
From India, Delhi
1426Is your organization a government body ??
What does the Terms and Conditions of employment of your organization speaks about HRA ??
Does your employee fulfill these criteria ??
How are you / your organization concerned where your employees spouse is working and what perquisite he or she is receiving as per the terms of that organization ??
Is the company where the employees wife is working, under your control ?? Or, is a subsidiary or sister concern ??
How can you stop the wife working in another organization from taking HRA ??
Or, is it your intention to DEPRIVE YOUR EMPLOYEE OF HRA even if he fulfills all the requirement for being eligible for getting HRA ??
Such rules are there WITHIN AN ORGANIZATION where both the employee and his spouse is working.
This is not the case here; so it would be better if you could answer the ABOVE QUESTIONS and EXPLAIN YOUR AUTHORITY in terms of HRA for his wife in another Organization - whether that other organization has EMPOWERED you to decide or DICTATE the terms of HRA in THEIR ORGANIZATION ??
If its so, whether you are receiving any compensation/salary from THAT OTHER ORGANIZATION ?? Have your organization allowed you for this ??
Before taking any action against your employees, you should make sure of your empowerment or limitations.
When you answer the ABOVE QUESTIONS, you will be able to understand whether your PROPOSED ACTION IS MALAFIDE (done with bad or doubtful intention) OR BONAFIDE !!!
Warm regards.
From India, Delhi
Mr V,
claiming hra by both wife and husband is correct. They may stay or working in the same station or not. They are working in different organisations.
Refer it act rules or ready reckoner for hra. There is no need of shown in single head. Both are different heads and having liability under income tax against each individual..
From India, Visakhapatnam
claiming hra by both wife and husband is correct. They may stay or working in the same station or not. They are working in different organisations.
Refer it act rules or ready reckoner for hra. There is no need of shown in single head. Both are different heads and having liability under income tax against each individual..
From India, Visakhapatnam
Dear DVK,
It is happening that both husband & wife when working in different places & with diff. employer claim HRA separately. In some Govt. offices they obtain a declaration on actual payment of HR supported with rent receipts. In all fairness HR paid should be shared and claimed. For the question of whether or not to pay HRA by your office you should go by your HRA policy rather than investigate into whether the spouse also claim/paid HRA. And it's not illegal if both are paid as it is as per the terms & conditions of appointment. However it is not correct to pay HRA to both if both are residing in the same house which is owned by either of them for the simple reason that a spouse does not require to pay HR to their partner. Some relevant references are provided in the attachment for general information.
From India, Bangalore
It is happening that both husband & wife when working in different places & with diff. employer claim HRA separately. In some Govt. offices they obtain a declaration on actual payment of HR supported with rent receipts. In all fairness HR paid should be shared and claimed. For the question of whether or not to pay HRA by your office you should go by your HRA policy rather than investigate into whether the spouse also claim/paid HRA. And it's not illegal if both are paid as it is as per the terms & conditions of appointment. However it is not correct to pay HRA to both if both are residing in the same house which is owned by either of them for the simple reason that a spouse does not require to pay HR to their partner. Some relevant references are provided in the attachment for general information.
From India, Bangalore
Dear Team,
Warm greetings!!!
Husband and wife both can claim the HRA only if they are not staying in same house. Rent receipt should be original. If the monthly rent is more than Rs 1 lakh and above in a year PAN No. and copy of the PAN card is must. Whether it is Government or Non Govgernment, IT department can track all the transaction through PAN No. only. Hence any one can claim for the HRA in same house only.
Regards
Pranab Chakraborty
9404384433
From India, Mumbai
Warm greetings!!!
Husband and wife both can claim the HRA only if they are not staying in same house. Rent receipt should be original. If the monthly rent is more than Rs 1 lakh and above in a year PAN No. and copy of the PAN card is must. Whether it is Government or Non Govgernment, IT department can track all the transaction through PAN No. only. Hence any one can claim for the HRA in same house only.
Regards
Pranab Chakraborty
9404384433
From India, Mumbai
This thread is interesting, but i feel that the gist of employment is missing. The terms of employment of one org is different from the other. Each emp should be treated individually rather than seeing his/her marital status.
If the terms of employment describes that he is eligible for HRA, whether his wife is claiming etc etc should not be an issue. Under the IT tax both individual are considered as separate entity rather than same basis marital status.
In case of issues such as this, every org should view the employee the way Income tax rule are framed.
From India, Mumbai
If the terms of employment describes that he is eligible for HRA, whether his wife is claiming etc etc should not be an issue. Under the IT tax both individual are considered as separate entity rather than same basis marital status.
In case of issues such as this, every org should view the employee the way Income tax rule are framed.
From India, Mumbai
Dear friends,
Opinions of learned members are welcome on all the matters discussed in the forum. It's obvious everyone could express what they think/view as right, may be the same could be really correct or may not be correct as everybody is not expert in all the areas discussed here. In other words it should be treated as 'Opinions' only. At the same time it's upto the viewers to choose & accept what they think the correct one. I also appeal to all my friends that these opinions at best should be treated as a suggestion and it is the responsibility of the concerned to ensure what is correct among these and how to act upon.
Re: HRA I feel we shouldn't mix with the provisions of IT. It is known fact IT laws doesn't prescribe how much should be given as HRA or for that matter any part of one's emoluments. It's the prerogative of an employer to fix emoluments of their employees. It's also not expected of them how and how much spouses of their employees are paid except when where fraudulent claims are made like LTA, medical exp. etc. IT law only insist that earnings should be disclosed and Tax due should be remitted appropriately. I don't think or come across any employer put a pre-condition for granting HRA that a spouse also shouldn't receive HRA. Therefore I feel investigation into this type of HRA is unwelcome.
From India, Bangalore
Opinions of learned members are welcome on all the matters discussed in the forum. It's obvious everyone could express what they think/view as right, may be the same could be really correct or may not be correct as everybody is not expert in all the areas discussed here. In other words it should be treated as 'Opinions' only. At the same time it's upto the viewers to choose & accept what they think the correct one. I also appeal to all my friends that these opinions at best should be treated as a suggestion and it is the responsibility of the concerned to ensure what is correct among these and how to act upon.
Re: HRA I feel we shouldn't mix with the provisions of IT. It is known fact IT laws doesn't prescribe how much should be given as HRA or for that matter any part of one's emoluments. It's the prerogative of an employer to fix emoluments of their employees. It's also not expected of them how and how much spouses of their employees are paid except when where fraudulent claims are made like LTA, medical exp. etc. IT law only insist that earnings should be disclosed and Tax due should be remitted appropriately. I don't think or come across any employer put a pre-condition for granting HRA that a spouse also shouldn't receive HRA. Therefore I feel investigation into this type of HRA is unwelcome.
From India, Bangalore
Dear Members,
As far as Salary at Source Deduction for Rent Paid benefit is considered. If employee produces the Rent Receipt & Rent Agreement. If Agreement is in Joint name i.e. Husband & Wife. Then additional undertaking has to be obtained to that effect that the benefit is taken by me and not by her / his spouce. This undertaking should be signed by the employee and his / her spouce Then the Employer is safe from all sides. You can give the benefit of Rent Paid as per IT Rules.
Both i.e. Husband & Wife are claiming benefit on the single agreement is not the problem of employer, let this job should be done by Assessing ITO at the time of Assessment.
ONLY UNDERTAKING FROM THE EMPLOYEE - SHOULD BE ON RECORD.
Regards
Ramakant
From India, Pune
As far as Salary at Source Deduction for Rent Paid benefit is considered. If employee produces the Rent Receipt & Rent Agreement. If Agreement is in Joint name i.e. Husband & Wife. Then additional undertaking has to be obtained to that effect that the benefit is taken by me and not by her / his spouce. This undertaking should be signed by the employee and his / her spouce Then the Employer is safe from all sides. You can give the benefit of Rent Paid as per IT Rules.
Both i.e. Husband & Wife are claiming benefit on the single agreement is not the problem of employer, let this job should be done by Assessing ITO at the time of Assessment.
ONLY UNDERTAKING FROM THE EMPLOYEE - SHOULD BE ON RECORD.
Regards
Ramakant
From India, Pune
Greetings Vijay Kumar Dasari,
In my opinion you have raised this query in respect to claims made by the employee and his spouse in the context of Income tax exemption for the Financial year 2013 - 14. If the question is understood from that perspective, I feel you can take the original rent receipt from your employee and consider the exemption. At this juncture the finer aspect pointed out by Mr.Pranab needs to be taken care. The rent receipt with the PAN number & copy of the house owner, if the rental value is above 1 Lakh can be retained by you as your record.
If the spouse of the employee is claiming HRA from her organization over which you have no control may not be a matter of concern for your company. If both of them claim from the respective employer and if it comes to the notice of IT authorities then the employee will be questioned and not your organization because as a Tax Deducting authority you have verified the genuineness of the claims made by your employee by obtaining the original rent receipt from the claimant.
I request you to clarify as to whether you raised the query in respect to IT provisions.
Regards
From India, Madras
In my opinion you have raised this query in respect to claims made by the employee and his spouse in the context of Income tax exemption for the Financial year 2013 - 14. If the question is understood from that perspective, I feel you can take the original rent receipt from your employee and consider the exemption. At this juncture the finer aspect pointed out by Mr.Pranab needs to be taken care. The rent receipt with the PAN number & copy of the house owner, if the rental value is above 1 Lakh can be retained by you as your record.
If the spouse of the employee is claiming HRA from her organization over which you have no control may not be a matter of concern for your company. If both of them claim from the respective employer and if it comes to the notice of IT authorities then the employee will be questioned and not your organization because as a Tax Deducting authority you have verified the genuineness of the claims made by your employee by obtaining the original rent receipt from the claimant.
I request you to clarify as to whether you raised the query in respect to IT provisions.
Regards
From India, Madras
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