How to Claim HRA in ITR: This time the deadline for filing Income Tax Return (ITR) is 31 July 2023. In such a situation if you are burdened with tax then don’t forget to claim HRA exemption in income tax return. Note that only those living in rented accommodation can claim HRA exemption. So let’s clearly know how you can claim HRA exemption….
New Delhi: Employees are given the benefit of House Rent Allowance (HRA) as part of their salary. If your salary is more than the income tax exemption limit u/s 10 (13A) of Income Tax, you can claim HRA in your income tax return. Calculation of house rent allowance in income tax return depends on factors like salary, HRA component, rent paid and location. House Rent Allowance or HRA – the most important allowance given to salaried individuals – can help meet the cost of renting a house in the city of work. It helps to reduce taxes partially or completely.
What is HRA?
HRA is part of an employee’s salary. An employee living in a rented house can claim HRA to reduce the tax burden. Notably, if an employee does not live in a rented house, he cannot claim HRA exemption. An employee can get the benefit of HRA only when the employer (company) has not claimed on behalf of the employee.
How should an employee claim for HRA?
An employee can claim HRA by submitting the rent receipt to the company. However, for this, it is necessary to have the signature of the employee on this slip and if the rent paid in a year is more than one lakh rupees, then your PAN also needs to be given.
How to claim HRA yourself?
If the company is unable to calculate your HRA, you can claim in ITR. You have to mark the items which are not exempted from HRA. But to claim HRA exemption you have to opt for old tax regime.
Get HRA Exemption by Staying at Parent’s Home
You can claim HRA exemption even if you stay at your parent’s home. You can get this exemption only when your parents show the rent paid on your behalf in their income tax return. Also those who do not earn income from salary, can claim exemption under Income Tax Section 80GG.
