While filing Income Tax Return ( ITR ), taxpayers want to avail maximum exemptions. Although, the Income Tax Department gives tax exemption to the taxpayer on many schemes and allowances. Even a salaried person who pays rent for his residence can also avail the benefit of HRA deduction.

Let us tell you that salaried persons get house rent allowance (HRA) along with their salary. In such a situation, taxpayers claim HRA exemption, but many times the Income Tax Department rejects their claim.

In such a situation, the question arises as to how to claim HRA so that the claim is not rejected and which documents are mandatory while making the claim.

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Before knowing how to claim HRA, let us tell you that the information about how much HRA an employee gets is given in the salary slip. Apart from this, the company also gives this information in the tax projection statement of its financial year.

HRA is a part of salary, so its information is in Part B of Form 16. Form 16 is issued by the company. It contains all the information of the employee like basic salary, TDS, HRA etc.

Is rent agreement and receipt necessary?

Rent Agreement is necessary for HRA claim. Apart from this, Rent Receipt is also important. Actually, the Rent Receipt shows that the employee has paid the rent as per the rent agreement.

For this reason, the taxpayer should keep both these documents safely. Sometimes the Income Tax Department orders to submit these documents due to some discrepancy.

In the absence of rent receipts, the claim can also be rejected by the department. In fact, many times taxpayers make rent agreements with their family members. In such cases, the department rejects the claim due to lack of rent receipts or proof of actual payment.

You can file a claim without a PAN card

PAN Card is issued by the Income Tax Department. As per the rules, if a person pays less than Rs 1 lakh as annual rent, then the landlord does not need a PAN Card.

At the same time, it is mandatory to provide the PAN details of the landlord for rent of more than Rs 1 lakh. If the tenant pays rent of more than Rs 6,00,000 annually, then TDS of 10 per cent is deducted from the monthly rent.

If the landlord does not have a PAN, then in such a situation the landlord has to give a written declaration. In this, the landlord has to give the name, address and other information. This information helps in verifying the rent receipt.

The post ITR Filing 2024: If you do not provide these documents then your HRA claim may be rejected first appeared on Rightsofemployees.com.

HRA Claim: Financial year 2024-25 is going on and filing of income tax returns has already started. Income Tax Department has released ITR forms. Apart from this, employers have sent information to their employees to give investment declaration and this process is going on in many institutions. There is a discussion going on among the people regarding the selection of new tax regime and old tax regime and there are many questions in the minds of taxpayers regarding which tax regime should be used to return income tax.

Mistakes made in claiming HRA can prove costly

In the old tax regime, people filing income tax returns are required to provide investment proof and a major component for this is HRA i.e. House Rent Allowance. By claiming HRA, a large section of the salaried class tries to save their tax, for which they usually claim HRA by giving rent slip. However, to make HRA claim, many times employees resort to such proof in return of which the employer can reject the claim. Keeping this in mind, we are telling you what things should be kept in mind and which you should avoid.

Avoid these mistakes while claiming HRA

Do not rely only on rent receipts

Often employees keep rent receipts in their office to claim HRA. This does not guarantee exemption from tax deduction in any case and apart from these, you should also attach some solid documents in your favor like bank account details etc.

Absence of rent agreement can cause problems

Many times, while making HRA claim, employees mention their parents, brother or any other relative etc. and say that the rent agreement was not made. If the matter is ever investigated and the rent agreement is not found, your HRA deduction may be rejected.

Paying in cash can give headache

If you have paid the landlord in cash and you do not have proof of it (not even a receipt), then your HRA claim may be rejected. You should always transact the rent into the landlord’s bank account instead of cash payment and should have the bank statement mentioning this.

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The post HRA Claim Mistakes: If you claim house rent allowance then do not make this mistake, it will cause problems. first appeared on Rightsofemployees.com.

There is a provision to get special exemption on the rent given to the people living on rent, but to get this exemption, you must have some important documents. Without this you will not be able to claim HRA. If you are also a taxpayer and want to claim tax exemption while filing ITR, then know what things should be kept in mind to avail this benefit.

You can claim HRA even while staying at your parents’ house.

Even if you live in your parent’s house, you can claim exemption under HRA to get income tax exemption. Let us tell you that almost every private employee gets HRA, which is a part of his CTC. Exemption for HRA can be claimed under section 10(13A) of Income Tax.

In such a situation, if a person lives in his parents’ house, he can claim HRA exemption for the rent of that house as well, if there is a solid document. According to the Income Tax rules, you can claim this exemption only through the rent receipt on annual rent up to Rs 1 lakh.

At the same time, you will have to give the PAN card number of the landlord for the rent higher than this. After this, the landlord will also have to pay tax on income above Rs 1 lakh and you will be able to claim HRA for the amount above that.

These documents are necessary for claiming HRA

According to income tax rules, if you want to get exemption under house rent allowance, then for this you must have the receipt of the rent paid. Without this you cannot claim the rent. For this, get a rent agreement done with your landlord. This is considered a strong proof of rent paid. This rent agreement should contain your name, landlord’s name, address, PAN number, Aadhaar number and stop duty paper as per the rules of that state. If you are paying any TDS on this, then mention the same in this agreement.

ITR file will have to be done by 31st July-

The season for filing income tax returns for the financial year 2022-23 or assessment year 2023-24 has come. The Income Tax Department has fixed its deadline till July 31, 2023. While you can file it till December 31, 2023 with late fees.

The post HRA Tax Exemption Documents! These documents are required for HRA claim, see the complete list here first appeared on Rightsofemployees.com.