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Error in HRA EXEMPTION in ITR3

18 July 2023

Hi,. While entering HRA in ITR3 I am getting error as "Exemption of HRA shall not be more than HRA received or 50% of basic + da". But same is working in ITR1 . HRA exemption has given in form 16 from my company.As I am doing fno trading i need to file ITR3.

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160442 Points)
Replied 18 July 2023

It is warning sign to check whether you are taking the exemption as per rule. Are you able to confirm the Schedule Salary?

1 Like

Deeptha Srinivasa Ragavan (Article Assisstant) (218 Points)
Replied 18 July 2023

Please enter salary break up in itr showing separately basic, hra and other allowances. You will not get this error.

1 Like

Rave Adventure (22 Points)
Replied 20 July 2023

Yes after watching some YouTube videos I got to know that adding it separately. Thanks..today I have submitted ITR 3 from my own with FNO, capital gain and salary income.

1 Like

Musrath Shaik (175 Points)
Replied 20 July 2023

It appears that you are encountering an error while entering House Rent Allowance (HRA) details in ITR-3 (Income Tax Return Form for individuals and HUFs having income from profits and gains of business or profession). The error message indicates that the HRA exemption should not exceed the lower of either the HRA received or 50% of the basic salary plus dearness allowance (DA).

Here are a few things you can check and consider to resolve the issue:

Verify HRA details: Double-check the HRA details provided in your Form 16 (TDS certificate issued by your employer). Ensure that the information about HRA received, basic salary, and DA is correctly mentioned. Sometimes, errors in Form 16 can lead to discrepancies while filing the tax return.
Check ITR-3 fields: Make sure you are entering the HRA details in the appropriate fields in ITR-3. Input the HRA received and other relevant information as per your Form 16.
Reconcile the amounts: Calculate the HRA exemption amount based on the lower of the following two options: a. The actual HRA received during the financial year. b. 50% of your basic salary plus DA, if you live in a metro city (or 40% if you live in a non-metro city).

For further more detailed information on this topic visit: New Income Tax Return (ITR) Forms for AY 2023-24

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1 Like

Rave Adventure (22 Points)
Replied 20 July 2023

Thanks for the details..all these info I am already aware of. And my problem has been resolved. Thanks

Arti Chawla (Chartered Accountant) (7 Points)
Replied 30 July 2023

Thanks for this suggestion, Very helpful! I was also facing the same error in HRA for last 3 days, but applied this resolution - added break up of salary, hra and other allowances and the error got resolved.

1 Like