Key Points
To save tax on rent paid during the financial year, an individual can claim exemption on HRA..
However, an individual must have certain proofs apart from paying rent to claim HRA exemption and avoid rejection from the income tax department..
Here is a list of proofs to keep handy and things you must do to ensure that your HRA tax exemption is not rejected by the tax man.. 1. Valid rent agreement: As a tenant, ensure that you have a valid rent agreement with your landlord..
PAN of the landlord: If you are claiming HRA tax exemption from your employer, then you must mandatorily give your landlord's PAN if rent paid exceeds Rs 1 lakh in a financial year..
However, chartered accountants advise that individuals should make and keep the documents required even when the rent is paid to the family member or else the income tax department can reject the HRA tax exemption...
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Claiming HRA exemption on rent paid to spouse? New I-T regime will end this game of truth or dare.
25, Jul, 23The Income Tax Appellate Tribunal in India has allowed a house rent allowance (HRA) deduction of INR369,000 ($5,172) which was previously denied by the Income Tax Office. The payment was made to the appellant's wife, who owns the property in question. Although nothing physically stops salaried taxpayers from claiming HRA exemption for rent paid to relatives, tax officers are examining the authenticity of such claims.