ITR 2024: House Rent Allowance exemption is provided to salaried people to help them with their living expenses. HRA is used to reduce the taxable income of the salaried person and reduce the tax liability.
HRA limit by cities
- HRA for four metro cities Delhi, Mumbai, Kolkata and Chennai 50% of basic salary + DA for metro cities
- HRA for other cities is 40% of basic salary + DA for non-metro cities
What documents will be required to claim HRA deduction
To claim HRA deduction in income tax return, a salaried person needs certain documents-
Rent Agreement – Rent agreement is a solid proof that you have rented your residence. For deduction, there must be a valid rent agreement of the current financial year.
Rent Receipt – Rent receipt is also required along with the rent agreement. The receipt received for payment of the amount paid as rent every month during the financial year must be stamped. Receipt will be required even in case of payment through electronic mode.
Also Read: DMRC Liquor policy: How many liquor bottles allowed to carry in Delhi metro, know DMRC rules
Landlord’s PAN card – To claim HRA deduction in income tax return, you will have to provide a copy of the landlord’s PAN card. If you are paying rent of more than Rs 1 lakh in a year, then a photocopy of the landlord’s PAN card will be required.
Proof of payment – Whatever the mode of payment of the house rent, you must have proof of rent. For this, bank statement, online transaction receipt and other proofs can be useful.
Rent of family member – If you are paying rent for a family member, you can still claim deduction. However, there should be valid proof and documents for payment of this rent as well.
Employee Declaration Form: If you are a salaried employee, your employer may require you to fill an Employee Declaration Form to claim HRA exemption. This form includes details about the rented accommodation and the rent paid.
If you are a salaried person and you want to deduct HRA and show it in Form 16, then all these documents have to be submitted to the employer. However, you can also claim HRA while filing ITR.
