An Income Tax notice may arise if a salaried employee fails to provide necessary information to their employer but proceeds to assert an HRA claim in their ITR. Additionally, a tax notice can be prompted if you are simultaneously seeking both HRA and home loan deductions, while your residence and place of employment are situated within the same Claim HRA Less than 1 Lakh. It is a common misconception that an employee can only claim HRA if it exceeds ₹ 1 lakh per year. However, an individual can claim HRA less than 1 lakh if they meet the conditions for claiming HRA and their rent payment is lower than the amount calculated under the three criteria mentioned earlier. If an individual Maximum HRA limit under Section 10 13A. The maximum House Rent Allowance under Section 10 13A is calculated as the minimum of the following three amounts: Actual HRA received from the employer. 50% of basic salary for employees living in metro cities (40% for non-metro cities) Rent paid minus 10% of basic salary. If yes then it should be mentioned in salary slip or form 16. Secondly the income tax department does reconciliation between deductions shown in Form 16 and return filled. So if you have any proof of HRA being a component of your salary it can be claimed in the return. Otherwise you might get a notice and the burden of proof that you have HRA is the rent allowance paid to the individual taxpayers and hence can be claimed by them. The other eligibility conditions for claiming HRA are, The person should be a salaried or self-employed person. The person should have HRA as part of the salary structure. The person should be living in rented premises. . Watch to knowHow to Solve Error of HRA in ITR Filing 2023-24 | HRA Error while Filing ITRitr filing online 2023-24,error while filing itr,itr filing error #3: HRA can be claimed directly on your income tax return. Forgot to submit the rent receipts to your employer at the time of proof submission? Well, you can still claim HRA while filing your income tax return. Adjust your taxable income to include HRA and recalculate tax on the lowered taxable income. Some points to consider for availing of HRA tax exemption benefits: Rent receipts are a must even if you are paying rent to your parents. If you are staying in your own house, you cannot claim for HRA even if your employer contributes to HRA. While filling out an ITR, bank statements stand as proof of rent payments. The HRA is exempt up to 1.2 lakhs, with the additional 1.2 lakhs subject to tax. Once you are aware of the HRA claim amount, use the appropriate ITR form and submit your ITR by doing the following: Enter your salary in Form 16 – Part B’s “Salary as per requirements specified in section 17(1)” field. Rent receipts are used for tax benefits or legal matters when you are considered eligible. To claim the House Rent Allowance (HRA) from the employer, the rent receipts are often kept as evidence. The employer provides allowances and deductions after verification of the documents. The HRA allowance is based on the rent receipts and is calculated

how to claim hra in itr