How to claim tax exemption on HRA?

You can claim for Tax exemption on HRA by either submitting the rent agreement or rent receipts to your employer or by not submitting it.

i) When the submission of the rent agreement and the rent receipts is done to the employer, In this case, the tax-exempted chunk of HRA availed of by you can be found in Form-16.

You should also remember that along with the submission of rental agreement/ rent receipts, you also require to give away the PAN of your landlord, provided the annual rent goes beyond the Rs 1,00,000 mark.

In consonance with the rules in Section 17(1) under the 'Gross Salary' tab, the tax component will be incorporated into your salary.

On the contrary, tax-free from the part of HRA will be exhibited distinctively under the head allowance to the extent spared under Section 10.

If the tax return is filed on the e-filing website via the ITR-1, then the sum of HRA free from tax is probable to be pre-filled. It is recommended that you should crosscheck the pre-filled data with the available documents as stated in the Part-B of Form-16.

If the details are not pre-filled, these particulars are to be reported as either a taxable portion of HRA or as a tax-spared chunk of HRA.

ii) When the rental agreement and the rent receipts are not submitted to the employer In such an event, you can manually compute the tax-spared component of the rent allowance availed of by you as your employer considers the entire HRA given is taxable. Post-calculation of the tax-spared chunk of HRA, you can claim this perk by stating the same in your Income Tax Return.