HRA Tax Exemption: The season to file income tax returns has arrived. Such people, who live in a rented house, can claim tax exemption on house rent allowance.
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 living in your parents’ house.
Even if you live in your parents’ 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. HRA can be claimed as deduction under section 10(13A) of Income Tax.
In such a situation, if a person lives in his parents’ house, he can claim HRA exemption on the rent of that house too, provided he has any concrete documents. As per the Income Tax rules, you can claim this exemption only through the rent receipt for annual rent up to Rs 1 lakh.
At the same time, the PAN card number of the landlord will have to be given for rent more 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 on the amount above that.
These documents are necessary for claiming HRA
According to income tax rules, if you want to claim exemption under house rent allowance, then you must have the receipt of the rent paid. Without this you cannot claim rent. For this, get a rent agreement done with your landlord. This is considered a strong proof of rent paid. This rent agreement should have your name, landlord’s name, address, PAN number, Aadhaar number and duty stoppage paper as per the rules of that state. If you are paying any TDS on this, mention the same in this agreement.
ITR file will have to be done by 31 July-
The season to file income tax returns for FY 2022-23 or Assessment Year 2023-24 has arrived. The Income Tax Department has fixed its deadline till July 31, 2023. While you can file it with late fee till December 31, 2023.
Read the Latest India News Today on The Eastern Herald.
