HRA and Medical Bills

Iranna 1
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I have query regarding HRA and Medical Bills submission

During the FY 2011-12, I have worked in 2 companies

First Company: from April 2011 to Nov-2011

Current Company: from Dec-2011 to till date

My first company finance official is adamant and not ready to accept the House rent receipt and Medical Bills. I know I can claim during filing my returns later with tax department. But that’s a hassle.

Please suggest with whom I can raise this issue which will make the employer to abide. So that in future nobody will suffer.

Regards

Iranna

medical-bills house-rent-allowance medical-reimbursement hra income-tax
1 Answers

House rent and medical allowance is a employer provider component and is not a standard tax saving method across all tax payers. So to claim deduction under these components, one has to only submit bills to employer and claim benefit for same.

In income tax return form, there is no field/section to claim same. If you will have to claim same while IT return filing, you would need to direct deduct amount from your taxable income. This creates a difference between what employer declare in form-16 and what your declare, so it raises a doubt in income tax officer's mind. They may raise a query on same and may not issue a refund.

This issue should have been settled only before your full and final settlement was done with previous employer. Most the employers accept such bills before making a final computation on FnF.

Pankaj Batra5212
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