Right of employee to reject accommodation and tax liability.
B N SURESHA
(Querist) 23 May 2016
This query is : Resolved
Sir,
I, Suresha B N working in a PSU. Presently I have been paid by HRA and recently my organization is going to provide rent free accommodation by stopping the HRA. I have decided to give off quarters as well as HRA and needs to stay in private rented house for the purpose of my children's education. Can have the right to certificate from my employer stating that the employee is not provided with free accommodation which will enable us to avoid unnecessary tax burden on perquisites. My question is (1)weather my employer forcebily allot the quarters, though I have give off the rent free accommodation as well as HRA on my own? (2)Weather I can leagaly reject the rent free accommodation as well as HRA by staying in a rented house on my own liability and avail the benefit of tax liability on perquisites. (3)What are the laws and judgements for supporting my view? (4) weather it is a compulsion to the employee to go and reside in the free accommodation/quarters?..... Requests the law experts to give your valuable legal opinion.
Kumar Doab
(Expert) 24 May 2016
Hope you have the copy of appointment letter, service rules and policies etc.
Relate with such documents.
P. Venu 
(Expert) 24 May 2016
" Can have the right to certificate from my employer stating that the employee is not provided with free accommodation". No employer can give a false certificate. At the most, what the employer, that too a PSU, can inform is that you have not availed the Rent-free accommodation.
Kumar Doab
(Expert) 24 May 2016
Do the service rules provide for that:
'Employee can give off quarters as well as HRA and stay in private rented house'?
Rajendra K Goyal
(Expert) 24 May 2016
(1) , (2), and (4) Depend on your service conditions and policy of the employer.
(3) Judgment / reference cases / ruling / citation / decided cases not supplied in this section.
T. Kalaiselvan, Advocate
(Expert) 28 May 2016
If the service conditions say that you are required to live in the service accommodation due to the nature of your job and should always be present near the organisation to meet the service exigencies which may rise any moment, you may not have a choice, however since you have not divulged the nature of your employment nor have affirmed to have read the service condition in your employment offer letter or have whispered about the terms and conditions of the employment acceptance, any opinion given by the experts without ascertaining proper details may be a misleading advice, hence you may revert with more proper details for a proper advise to your situation.
