ITR Filing: How to claim HRA exemption – The HRA or House Rent allowance is compensation which is provided by the employer to the employee to meet the cost of renting a home in the city of the workplace. employee avails deduction for HRA via the payroll by providing requisite supporting documents and meets the necessary conditions.
You can check the exempt HRA amount in the tax projection statement provided to you. you can see the deduction in Part B of your Form 16. you can even file a revised return in order to make corrections before the end of the assessment year filing a return in a case when you have missed claiming the HRA.
Who claims HRA exemption?
If you are a Salaried employee and are provided with a house rent allowance as a part of your salary and pay the payment for rent so you can claim HRA exemption to reduce your taxable salary wholly or partially.
Claim HRA exemption: Eligibility Criteria
- You should be a salaried employee.
- You should have the HRA component in your salary structure.
- You should be living in rented accommodation.
How to claim tax exemption on HRA?
- Applicants must calculate how much of the allowance is taxable before claiming the HRA exemption.
- Fill out the declaration form provided to you by your employer at the start of a financial year and HRA exemption can be claimed by mentioning the amount in the form.
- You can also claim HRA by filing your tax returns using the ITR-1 form.
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