Employees generally receive a HRA from their
employers. This is a part of the salary package, in accordance with the terms
and conditions of employment. HRA is given to meet the cost of a rented house
taken by the employee for his/her stay.
The Indian Income Tax Act allows for deduction in
respect of the HRA paid to employees. The exemption on HRA is covered under
Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules. It
is to be noted that the entire HRA is not deductible.
HRA is an allowance & is subject to income
tax. An employee can claim exemption on his/her HRA under the Income Tax Act if
he stays in a rented house & is in receipt of HRA from his/her employer.
In order to claim the deduction, an employee must
actually pay rent for the house which he/she occupies.
Rental Receipt is must for claiming House Rent
Allowance (HRA).
With respect to the HRA, the person have to
submit the Rental Receipt to the office & the office have to vouch the
genuineess of the rental payment made by the person & give the exemptions
according to his/her salary structure.
In this case the person have no receipt for the
rental payment & therefore he/she is not eligible to claim the HRA under.
Reliance power is a high capital oriented
company. For the last several years the capital expenditure incurred by the
company, in new projects and acquisitions of existing companies has put a
severe strain on the company 's operations. The paid up capital is high and
revenues are low and delayed. Hence a dramatic turnaround is not possible.
The share holders of such companies are at the
mercy of the managements for dividends, and can not compel them to declare
dividends.At present your reader can not expect dividend/bonus from Reliance
power.
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