Hra verification
Ann
(Querist) 12 December 2013
This query is : Resolved
one of my company person sent me mail that we are investigating HRA proofs and asked all the documents to be submitted.
Later they took those documents to my house owner and asked him to verify the details and do a counter sign for verification.
My house owner got angry on me that why my company is doing all this and asked me to vacate house.
I want to know if it is legally allowed for a company to go to house owner who is third party and not connected to them.
A Company pays HRA as part of salary and not as claim.
The HRA verification is of income tax excemption claimed. It is Income tax dept job to verify the rent and not a company. atleast a general public think this way.
Devajyoti Barman
(Expert) 12 December 2013
Who are you, party or company official?
You have posted two queries of two different natures.
The company has done no wrong.
Ann
(Querist) 12 December 2013
I can not be company if I not done any wrong.
I am employee of company and now have to vacate house for no fault of mine.
can a company really aproach anyone even without any underlying approval from me.
Please suggest which is the rule which empowers them so much ?
prabhakar singh
(Expert) 12 December 2013
The Company is at no fault.You gave an address of your residence then the men at Co. had right to verify.
Land lords are very mischevious,they want to let and earn rent but when it comes to admit they are annoyed for no good reason.
Devajyoti Barman
(Expert) 12 December 2013
There is no rue which stops them to check whether HRA was properly claimed or not.
ajay sethi
(Expert) 12 December 2013
company is fully entitled to verify whether you are staying in rented house as claimed and can cross check with flat owner
T. Kalaiselvan, Advocate
(Expert) 12 December 2013
Company's act is lawful and legal, you should have ensured that there was no mishap during the process of verification by the company through your owner. May be your owner was afraid of income tax problem when the actual rental income has been disclosed.
Ann
(Querist) 13 December 2013
Thank you for so many replies.
Looks like there is confusion. A Company pays HRA as part of salary and not as claim.
The HRA verification is of income tax excemption claimed. It is Income tax dept job to verify the rent and not a company. atleast a general public think this way.
prabhakar singh
(Expert) 13 December 2013
True HRA is part of salary but an employer is entrusted on behalf IT Dept. to allow HRA
claimed against rent receipt submitted by the employee,and that gives employer right of verification.We have no confusion.Normally no verification is made hence you are laboring in confusion.
Devajyoti Barman
(Expert) 13 December 2013
You are unnecessarily dragging this thread searching for reply which suits you but the situation is the company has done no wrong to send officials to make background check.
Guest
(Expert) 13 December 2013
Ms. Ann,
There is no confusion to any of the experts above. A very simple thing you need to know is that the HRA is paid by the company from the revenue of the company, not by the IT Department from Government resources. The company is fully justified to verify whether its employee has submitted correct proof of HRA or not for claiming exemption from IT.
You should also know that it is the DDO of the company, who is liable to answer to the Assessing Officer if any income is wrongly exempted to the employees of the company to illegally save income tax by evasion of tax.
If your house owner gets angry that means he is not accounting for the income from rent of the house and evading payment of tax on his part. Even if you hire some other accommodation, the company can approach the landlord of that house also to verify your claim about HRA paid by you. So, it is between you and the landlord to clear the things in advance about your company's requirements, if the company approaches him for verification purposes.
