Company owned colony income tax on rent

[yateen vyas]

Experts,

I am working in a public ltd company's manufacturing plant where company have its own colony and i am leaving in that colony and paying rent to company. Amount deducted for rent directly from my salary reaming amount of HRA they are giving me in cash a personal allowance HR.

Now company is showing all amount as a taxable income please tell me how to resolve this issue.Why i should pay tax on amount which is i paid as a rent because rent is exempted from income tax act as i know.

Your expert advice will help me in understanding this issue.

Thanks in advance.

Rgds

Yateen vyas

AI Summary

Employee Challenges Tax on Rent Deduction from Salary; Seeks Exemption Under Income Tax Act for HRA Portion. An employee of a public limited company's manufacturing plant is residing in a company-owned colony and paying rent, which is deducted directly from their salary. The remaining amount of the Housing Rent Allowance (HRA) is provided as a cash allowance. The company is treating the entire amount, including the rent, as taxable income. The employee seeks expert advice on resolving this issue, questioning why they should pay tax on the rent portion, which they believe should be exempt under the Income Tax Act.