The Central Board of Direct Taxes has denied reports that it is running a special campaign regarding some cases related to irregularities in House Rental Allowance (HRA) cases.
The Income Tax Department has given big relief to some taxpayers. In fact, the department said that for the financial year 2020-21, a difference has been found between the rent paid by the salaried employees and the amount received by the recipient. The department has analyzed the data in high value HRA cases.
However, the Central Board of Direct Taxes (CBDT) has denied reports that the department is running a special campaign to reopen House Rent Allowance (HRA) cases. The number of such cases was very less as the rent paid by the tenant and the rent received by the recipient was verified.
The CBDT said in the statement that the data was analyzed in some high value cases involving discrepancies between the rent paid by the employee and the amount received by the recipient for the financial year 2020-21. This verification was done in a very small number of cases and a large number of cases have not been reopened.
The purpose was only to alert.
The Central Board of Direct Taxes said that the purpose of e-verification was only to alert about matters related to discrepancies in information for the financial year 2020-21 without affecting others. CBDT said that some cases of discrepancy between the returns filed by the taxpayer and the information available with the Income Tax Department have come to the notice of the department. This is nothing but a part of the routine steps taken to verify the data. In such cases, the department has alerted the taxpayers so that they can take corrective steps.
House rent allowance is part of salary income or CTC. It is calculated in taxable income. However, if an employee lives in rented accommodation, he can claim income tax exemption for HRA received during the year by submitting a valid rent receipt. However, if taxpayers opt for the new tax regime, they do not get any exemption.
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