Claiming House Rent Allowance: Is Rental Receipt must? .

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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