Is House Rent Paid To Grand Mother , Father & Mother Is Acceptable

Dear Seniors,
In my Co. there are few employees who are showing house rent receipt in the name of their mother , Father & Grandmother as investment proof against TDS deduction . Kindly let me if it is acceptable as they have blood relation.
Awaiting response...
Thanks
Ravita

Dear Ravita,

House rent rembursement is given only at the name of employee in TDS Calculation.

If any employee borrowed housing loan then repayment schedule required

If any body is rent payee then rent agreement required





Particulars Earning Deduction Taxable

Salary 289400 289400

HRA 151250 151250

Conveyance 118350 9600 108750

Childern Education Allw. 12000 0 12000

Special Allowance 18000 0 18000

Welfare Allowance 5000 0 5000

Total 594000 9600 584400





Deduction Under Section 80 C

P.P.F./ E.P.F. 2000

L.I.P. 32407

Saving Bond

NSC

Repayment of Principal of Home Loan

Infrastructure Bond

5 Year F.D.

ULIP

Total Deduction 34407

Taxable income from Salary 549993



Income From House Property







0

Deduction U/s 24 (b)

Interest paid on repayment of Home Loan 0

Taxable Income from house property 0





Income from Other sources



Total Taxable Income 549993



Computation of Income Tax

Upto 160000 160000 0 0

From 160000 -500000 340000 10% 34000

From 500000-800000 47593 20% 9519

Above 800000 30%

Income Tax 43519

Education Cess 870

SHE Cess 435

Total Tax Deductable 44824

Ya it is acceptable, they can show house rent receipt as investment proof until the employee have their own residence,as per section 10(13A) read with rule 2A ,least of three will be exempted

House Rent allowance (HRA) received.
50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
Rent paid in excess of 10 % of salary.