HRA Claim u/s 10 (13A) of the I.T.Act

[jitendra soni]

One of the employee submits rent receipt to the company exceeding 10 lacs in a year in order to claim HRA u/s 10(13A) of the  Income Tax Act, 1961

The Company ask him to provide Service Tax Number as service tax is applicable if one receive rent exceeding 10 lacs in a year.

The employee said that The landlord refused to give Service tax no.

can employer give benefit of HRA to employee

[CAGOPALJI AGRAWAL]

To my understanding, service tax is only for commercial properties not for residential one.

AI Summary

HRA claim: residential rent is not ordinarily subject to service tax, employer may still verify rent documentation before allowing benefit.
The employer requested the landlord's service tax registration when an employee submitted rent receipts to claim HRA, but the advisor responded that service tax targets commercial properties not residential tenancies, undermining the employer's rationale for withholding HRA due to absence of a service tax number while preserving the employer's right to verify rent documentation for tax compliance.