ITR Filing: How to claim HRA exemption while filing income tax return..
ITR 2024: House Rent Allowance exemption is provided to salaried people to help them with their living expenses. HRA is used to reduce the taxable income of the salaried person and reduce the tax liability.
HRA limit according to cities
HRA for four metros Delhi, Mumbai, Kolkata, and Chennai 50 percent of basic salary + DA for metro cities
HRA for other cities 40 percent of basic salary + DA for non-metro cities
What documents will be required to claim the HRA deduction?
To claim an HRA deduction in the income tax return, a salaried person needs some documents-
Rent Agreement- The rent agreement is solid proof that you have rented your residence. There should be a valid rent agreement for the current financial year for deduction.
Rent Receipt- A rent receipt is also required along with the rent agreement. The receipt received for payment of the amount paid as rent every month during the financial year must be stamped. Receipt will also be required in case of electronic payment.
Landlord's PAN card- To claim an HRA deduction in your income tax return, you will have to provide a copy of the landlord's PAN card. If you are paying rent of more than Rs 1 lakh in a year, then a photocopy of the landlord's PAN card will be required.
Proof of payment- Whatever the method of paying the rent, you must have proof of rent. For this, bank statements, online transaction receipts, and other evidence can be useful.
Family member's rent- If you are paying rent for a family member, then also you can claim for deduction. However, there should be valid proof and documents for payment of this rent.
Employee Declaration Form: If you are a salaried employee, your employer may ask you to fill out an Employee Declaration Form to claim HRA exemption. This form includes details about rented accommodation and rent paid.
If you are a salaried individual and want to deduct HRA and show it in Form 16, then all these documents have to be submitted to the employer. However, you can also claim HRA while filing an ITR.
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