Lower HRA exemption in ITR compared to Form 16

Tax queries 379 views 2 replies

Hitanshu Agrawal

Investment Banker

28 Points Posted on 05 February 2024

I have declared a monthly amount of rent outgo to employer, basis which the employer has been deducting TDS. Part of this amount I do not pay to landlord directly, but to society as maintenance charges.

To avoid any complexity, I now want to consider only the monthly amount I transfer to landlord for HRA exemption calculation. Can I pay difference in tax amount as self assessment tax to the IT department, and in ITR input a lower amount of HRA exemption, as compared to the value in the Form-16 from employer?

Thanks a lot for the guidance.

Replies (2)

Saravanan nagaraj

463 Points Posted on 06 February 2024

Please specify financial year.

Have you mentioned this maintenance charges alongwith your rent (Rent + Maintenance) in the rental agreement? Please go through your rental agreement once again.

How much your rent & maintenance charges? Do you have receipts or transaction proof for these transactions?

Have you submitted your rental agreement with your HR(Employer)?

Please explain clearly then only we can give you precise suggestions and advise to do.

Thanks 🙏

Hitanshu Agrawal

Investment Banker

28 Points Posted on 06 February 2024

FY is 2023-24.

Rent amount - 50,000. Maintenance charges - 9,000. Both are mentioned in the rent agreement separately.

Rent amount I transfer to landlord on monthly basis through online bank transfer. Maintenance charges are recovered by apartment resident welfare association through smart meter installed in every home on daily pro-rata basis. I keep recharging the smart meter as and when required.

I had declared 59,000 monthly rent to employer basis rent agreement. Now, to avoid any complication (there is some disagreement with landlord), I only want to claim 50,000 (amount transferred directly to landlord) as monthly rent for HRA exemption, and will pay extra self assessment tax.

My only confusion is there will be mismatch between number in Form-16 and what I declare in ITR (it will be lower than Form-16). Hope this will not cause any issue.

Thanks a lot for guidance.