Ii.When HRA is a part of your CTC & you forget to submit the proof of rent payment to your HR
Condition B : You can still claim the tax benefit of HRA at the time of filing of return as HRA is a part of your CTC.The only notional loss you will have to bear is more amount of TDS will be deducted during the year.
Condition C : If HRA is not a part of your CTC , don’t be disheartened. You can still claim the deduction of rent paid at the time of filing return u/s 80GG but upto Rs. 60,000 only.
Even if you forgot to submit rent receipts, you can still claim HRA while filing IT return. All you need is Rent receipts only.
How to claim HRA exemption at the time of filing the ITR?
Step 1: Calculate the HRA exemption amount as discussed above. To avoid hassle you can also use our HRA exemption calculator to find out the amount of exempt HRA at
Step2 : Deduct the amount of exempt HRA from the Income Chargeable under the head salary [column 6 of your Form 16, Part B].
Step3: Enter the amount calculated in Step 2 under Income From Salary /Pension. For instance your Gross Salary from Form 16 is 8,00,000 and you have HRA exemption of Rs. 1,20,000, So instead of showing Salary income Rs. 8,00,000/- in ITR1 fill it as 6,80,000/-.
Who can claim HRA exemption ?
- 1. You are a salaried employee.
- 2. You receive HRA as a part of your salary package/CTC.
- 3. You live in a rented accommodation.
How HRA is exempt for income tax?
Although HRA is a part of the salary, but unlike basic salary it is not fully taxable. A part of HRA gets exempted under Section 10 (13A) of the Income-tax Act, subjected to certain conditions. The amount of exempted HRA is deductible from the total income before arriving at a taxable income.
Can I pay rent to my parents and claim HRA?
Yes, you can claim HRA tax exemption by paying rent to your parents. It is advisable to have a rent agreement. You would need rent receipts to claim HRA exemption. Also, your parents need to show rental income from you in their income tax return.
Can I claim HRA and home loan?
Yes, certainly. You can claim both. If you are staying in a rented house, then you are eligible to claim HRA tax exemption. Simultaneously, if you have taken a house loan then you can claim the https://www.paydayloanstennessee.com/cities/murfreesboro/ house loan benefits too. If you have bought a house with the help of a home loan and live in another house on rent, you can claim tax benefit for both. But if the house you bought and the house you live in are in the same city, you should have a genuine reason for not living in the house that you own, to prove to Income Tax Officer. The reasons could be that the house you own is too far from your workplace, or the commute is very difficult.
Can HRA be claimed if I own a house?
No, you cannot enjoy the tax benefits of HRA if you live in your own house. One cannot pay rent to oneself. Hence, no exemption is available for HRA and the whole of HRA received becomes taxable under “Income from Salary”. But if you reside in a rented property, then you can claim exemption even if you own a house (in the same city or in a different city).
