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This query is : Resolved 
 

(Querist)
23 April 2012

if a director of a company uses rent allowance to pay installment of his own house mortagage loan, when rent allowance is given as a perk if you have rented place and not your own place, does the property he has paid emi down payment from his own resources become property or asset of the company.


raj kumar makkad (Expert)
23 April 2012

No. Your contension has no legal base. If the company is paying to its director the rent allowance then such person is free to use it. The company has no concern with the house of the director against which EMI is being paid by the director out of the rent allowance.

syed niaz ahmed shah (Querist)
23 April 2012

what happens to the property which was assigned to collect rent or lease the property to lessees through a partnership firm, of which the title holder was a partner and managing partner, on dissolution of the partnership firm on the death of one of the partner , and the firm is never reconstituted. does the title holder gets his property back and on informing the lessee that from the date of dissolution the rent collection and all the terms of the lease are to be referred to the title holder. The lessee has challanged the landlord position oof the title holder, and claims they will deal only with the firm which is dissolved . the other living partners have also given resolution to the effect that the title holder shall deal with the matter. are there any citations of earlier judgements by virtue of which the satnd of the title holder can restore his position of the landlord.

raj kumar makkad (Expert)
23 April 2012

The lessee has got no right or title to deny the claim of the lesser/landlord to collect the rent after dissolution of the partnership firm.

This certainly a violation of the lease agreement so the lesser has every right to issue a legal notice to lessee and seek eviction of the premises with complete arrears of rent within a stipulated time failing which approach to rent controller and get the eviction as per procedure.

DR.VEDULA GOPINATH (Expert)
23 April 2012

PERK IS A BENEFIT GIVEN TO INDIVIDUAL BY THE COMPANY WHICH IS A PART OF REMUNERATION PACKAGE. THE RENT ALLOWANCE IS GIVEN TO DIRECTOR AS A PART OF REMUNERATION PACKAGE.
THE RENT ALLOWANCE PAID BY DIRECTOR IS UTILIZED FOR HIS OWN LIABILITY OF INSTALLMENT PAYMENT TO A HOUSING LOAN.

THE ASSET ACQUIRED BY THE DIRECTOR BY PAYING INSTALLMENT PAYMENTS BELONGS AND ACCRUES TO INDIVIDUAL DIRECTOR PERSONALLY AND NOT TO THE COMPANY.

Nadeem Qureshi (Expert)
Click to Talk
23 April 2012

agree with Mr. Makkad

Deepak Nair (Expert)
23 April 2012

The director is free to use his salary and allowances at his wish. How can the company claim right on the property acquired by its director from a part of his package??

ajay sethi (Expert)
Click to Talk
23 April 2012

agree with makakad . director is free to use rent allowance to pay his loan install ments of his flat

R.K Nanda (Expert)
Click to Talk
23 April 2012

He may use HRA in any manner he likes.


The company should have no concern about how the perks, as remuneration paid, are used by the Director. In no way, the company has any claim over the personal property of Director in lieu of the perks paid to him. The Director is liable only to the extent pf compliance of the IT provisions in connection with the perks received from the company, rent paid by him for his rented house and the repayment of his own home loan installments and interest thereon for his house.

So far as the company is concerned, it is accountable only to the extent of TDS from his salary, as per the provisions of IT Act and Rules.

Raja (Expert)
23 April 2012

agree with makakad ji



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