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HRA higher rent submitted

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AT123

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25 Points Posted on 23 July 2022

Hello All

On behalf of my friend.

For last FY (21-22), he showed higher rent amount compared to what actually paid and submitted to the employer. Employer have deducted tax accordingly. Now the HRA amount showing as income against landlord PAN. Landlord is saying he is going to reject this as this is resulting in higher tax burden on him.

Now what would happen? Will income tax department send notice to my friend or his employer? If his employer, what would be the next course of action? If my friend, what would be the next course of action?

Thanks

Replies (3)

Quick Summary

A friend claimed a higher rent amount for HRA purposes than they actually paid, leading to incorrect tax deductions by their employer. The landlord is now disputing this, as it increases their tax burden. This raises concerns about who will receive notices from the income tax department – the friend or the employer – and what actions might be required to rectify the situation.