Hra exemption problem

This query is : Resolved

Bhagirath (Querist)
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20 August 2015 Hi...
I received Form 16 from my employer .
But House Rent Allowance is not shown in form 16 PART B (ANNEXURE).
In last three returns i have claimed HRA exemption because... HRA was mentioned in those old Form 16.
But in current Assessment Year... i think company did not mention it seprately by mistake.
But actually i received HRA from employer in A.Y. 15-16 (40% of my salary ).
Now i want to know ...
Can i take exemption of HRA Or Not, while filing income tax return.
I asked from my friend ... he said i can not take exemption of HRA because in AY 15-16 HRA is not mentioned in Form 16.
Pls answer fast .. as last date of filing return is very close .
Thanks

Bhagirath

Bhagirath (Querist)
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20 August 2015 Answer pls thx

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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28 July 2024 Yes, you can still claim House Rent Allowance (HRA) exemption while filing your income tax return, even if it is not mentioned in Form 16 for Assessment Year (AY) 2015-16. Form 16 is a summary of income and tax deducted by your employer, but it does not affect your ability to claim deductions directly on your income tax return.

### **Steps to Claim HRA Exemption:**

1. **Verify HRA Received:**
- **Check Records:** Ensure you have records showing that you received HRA from your employer during the relevant financial year (FY). This includes payslips or other salary documents.
- **Rent Receipts:** Collect all rent receipts and proof of rent payments.

2. **Calculate HRA Exemption:**
- **Formula for Calculation:**
- Actual HRA received.
- Rent paid minus 10% of salary.
- 50% of salary (for metro cities) or 40% of salary (for non-metro cities).
- **Claim the Least of the Above:** This is the amount you can claim as HRA exemption.

3. **Declare HRA in Tax Return:**
- **Income Tax Return Form:** While filling out your income tax return, declare the HRA exemption under the appropriate section (typically under the "Income from Salary" section).
- **Supporting Documentation:** Attach the rent receipts and any other relevant documentation to support your claim.

4. **Form 16 Discrepancy:**
- **No Impact on Claim:** The omission of HRA from Form 16 does not affect your right to claim HRA exemption. Form 16 is prepared by your employer for their records and to reflect the tax deducted. It does not prevent you from claiming HRA exemption directly in your tax return.
- **Communicate with Employer:** You can inform your employer about the discrepancy if you believe it was an error and request them to issue a revised Form 16 for future reference. However, this is not a requirement for claiming HRA in your current tax return.

### **Action Items:**

1. **Prepare Tax Return:** Calculate the HRA exemption based on the rent paid and HRA received and fill out your tax return accordingly.
2. **File Tax Return:** Submit your tax return before the deadline, including the HRA exemption claim, even if it's not reflected in Form 16.
3. **Retain Records:** Keep all supporting documents, such as rent receipts and proof of HRA received, as these might be required if the Income Tax Department requests them for verification.

### **Summary:**

- **Claim HRA:** You can claim HRA exemption in your income tax return even if it's not mentioned in Form 16.
- **Support with Documentation:** Ensure you have the necessary documentation to support your HRA claim.
- **File on Time:** Submit your tax return before the deadline to avoid penalties.

If you follow these steps, you should be able to claim the HRA exemption correctly and file your tax return on time. If you encounter any issues or have specific concerns, consulting a tax professional may provide additional guidance and support.

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