Non-deduction of TDS 194I and HRA exemption


This query is : Resolved 

Quick Summary
This discussion explores whether an individual can claim House Rent Allowance (HRA) exemption when paying over £50,000 in rent annually, but failing to deduct Tax Deducted at Source (TDS). The IT department has issued a notice requesting verification of HRA exemption, implying a potential denial and tax liability if TDS obligations were not met by the tenant.

(Querist)
24 March 2025 Whether HRA exemption can be denied if (1) Individual pays house rent of more than 50,000/-, (2) TDS was not deducted
In the above case, IT department has paid refund. But ITD has issued notice to verify HRA exemption and update return.
How can an updated return be filed if TDS was not deducted by tenant?
Whether by updating return ITD is directing to remove HRA exemption and pay tax?

24 March 2025 Yes, as per rules, employer should deny the HRA, if TDS liability by tenant has not ben fulfilled.

Rajesh (Querist)
15 June 2025 Thank you for your reply and guidance!

15 June 2025 You are welcome.

30 September 2025 Good luck....


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