Notice u/s 143(1) and HRA

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If you've received a notice under Section 143(1) disallowing your House Rent Allowance (HRA) exemption for the 2020-21 assessment year, it's likely because you live in your own purchased property. Generally, HRA exemption isn't permitted when you reside in a house you own. You may need to agree with the disallowance and consider filing a revised return, especially if the property is in your city of employment. However, if you can provide valid, documented reasons for not living in your own home, you might still be able to claim HRA along with other deductions.

Meenakshi . S

Meenakshi . S (Querist)

23 September 2021 I received notice u/s 143(1) which disallowed my HRA exemption for the assessment year 2020-21. HRA exemption is not allowed when we live in our own house. I purchase a house property in 2019 with housing loan. I claimed deduction u/s 80c as well as sec 24a. I also live in the same purchased house. Should i agree with the disallowance and file revised return. please suggest

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 September 2021 Yes, if the new purchased house is in the same city of your employment, then HRA is not allowed. So, you have to agree with the dis-allowance.

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ND (Expert)

24 September 2021 Alternatively if you can substantiate why you are unable to stay in your own house instead of staying in a rented house, then you can claim HRA deduction as well as deduction u/s 24. The reason should be a valid one and should be duly supported by the adequate documentation.

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