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.
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?