The deadline for filing income tax returns is 31 July 2024. Meanwhile, most taxpayers must have received their Form 16. Form 16 contains complete information about your income (ITR Form 16). It also tells which amounts have been added or deducted from your salary. Form 16 is very useful during ITR filing (ITR filing deadline). Form 16 is also important for HRA and other exemptions, because if wrong information is filled then you may suffer loss.

These are not eligible for HRA exemption benefits
It is worth noting that HRA exemption under section 10(13A) can be claimed only if someone lives in a rented house. Apart from this, taxpayers who do not receive HRA such as non-salaried (ITR filing 2024) employees can claim a deduction for their rental expenses under Section 80GG under certain limits. Those who live in their own house are not eligible for HRA exemption benefits. In such a situation, if you make the wrong HRA claim (ITR HRA claiming tips), then you may suffer a loss. Let's know the rules.

How to do maximum tax saving
HRA is an important part of the income of a salaried person, which gives the benefit of substantial tax saving (tax saving tips) under the Income Tax Act. Claiming HRA correctly can get a tax deduction. Here's how to claim HRA while filing taxes so that your tax savings can be maximized and you do not have to pay the price for it.

This is the calculation of the HRA exemption

Actual house rent allowance received from the employer

Annual rent payment reduced by 10% of the salary (HRA calculations)

50% of the basic salary of the employees (for employees living in metro cities) or 40% of the basic salary (for non-metro cities)

Let us tell you that these are the amounts that come under the HRA exemption and tax exemption (HRA tax benefits) are given based on the lowest of these. In such a situation, you can claim HRA by calculating on this basis.

Which documents will be required?
If the rent is more than Rs 1 lakh annually, then the receipt received from the landlord and the PAN details of the landlord will have to be given. (Rent agreement for ITR)

Rent Agreement: It is necessary to give a formal rent agreement, which verifies your claim.

These documents are not required to be uploaded, but they should be readily available (HRA benefits) in case of inquiry by the authorities. Wrong HRA claims can lead to penalties, so it is more important to be careful and aware of the consequences.

How expensive will a wrong HRA claim be?
According to Business Today, Deloitte partner Sudhakar Sethuraman said that if the officer says that a person has underreported his income (Wrong HRA claim penalty) or has given wrong information about HRA, then a penalty of 50% of the tax payable on the underreported income will be imposed. Apart from this, a penalty of up to 3 times (300%) of the amount of tax evaded (income tax return) by hiding income like HRA can also be imposed.

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