Questions and Answers on HRA Rent Receipt
HRA stands for House Rent Allowance. HRA is a part of the salary provided by an employer to his employee for his rented accommodation. HRA exemption can be claimed only if the employee is residing in a rented house.
Please follow the given below steps to generate your rent receipt through myITreturn portal:
To claim HRA, you are required to submit relevant documents like rent receipts, rent agreement to your employer before the end of the financial year. If the amount of rent exceeds Rs. 1 lakh per annum the PAN of the landlord is also necessary. This will help you get exemption in your form-16 and you can avoid further hassles during your Income-tax return filing.
Deduction for HRA is available for rent paid by employee every month and you need to submit proof of rent payment to claim HRA exemption. HRA claim for entire year will be given to you at the end of the financial year on submitting all required documents.
It is mandatory for the employer to collect proof of rent payment. The employer will give you the exemption on HRA based on these rent receipts.
If the amount of rent exceeds Rs 1 lakh per annum the PAN of the landlord is also necessary.In case the landlord does not have a PAN, a declaration to this effect should be obtained from him, along with his name and address details.
If you didn't submit rent receipts to your Employer at the time of proof submission, you can claim HRA later while filing your income tax return. You can enter the amount of HRA directly in your return but make sure that the proof of payment is readily available in case there is a query from the tax office / Central Processing Centre (CPC).
Yes, If you're a homeowner and you are paying back your home loan, you can also claim HRA if you live in a rented property. You are allowed to avail both the benefits to lower your taxable income.
The least of the following will be allowed as a deduction from your taxable income-
- 50% of the basic salary if you live in a metro city.
- 40% of the basic salary if you live in a non-metro city.
- Actual rent paid less 10 percent of the salary.
- Actual amount of HRA received.
In case of payment to any NRI, payer is required to deduct TDS @ 30% to claim any expenditure or deduction. So If your landlord is an NRI, you should pay the rent after deducting TDS @ 30%.