HRA Tax Exemption: The season for filing 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 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.