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

Taxation of employer-collected rent questioned where HRA is paid as cash allowance but treated as taxable income. An employee living in a company-owned colony reports rent deducted from salary while the employer pays the remaining HRA as a cash personal allowance; the employer has shown the entire amount as taxable income. The employee asks why rent paid to the company is being treated as taxable and requests clarification on resolving the employer's payroll reporting of rent versus HRA.