ITR Filing: The process of filing ITR has started. Many employed people claim tax exemption on House Rent Allowance (HRA) in Income Tax Return. If you are also going to claim HRA, then you must have some documents, otherwise if a notice comes, it will be difficult to respond. Let us know about 4 such documents.
1- Valid Rent Agreement
If you are a tenant, then you must have a valid rent agreement. Also, you should keep in mind that the rent agreement should be under the Income Tax rules. For example, if your monthly rent is more than Rs 50 thousand, then TDS must be deducted from it. Apart from this, the rent agreement should contain all the basic details and PAN information of both the landlord and the tenant.
2- Rent receipt
To claim HRA, you must have a valid rent agreement as well as a rent receipt. That is, you will also have to keep the receipt of paying rent to your landlord. Only the rent receipt proves that you have actually paid the house rent to the landlord. While claiming HRA, you have to submit the rent receipt along with the rent agreement.
3- Online rent payment statement
Although no one asks you about the method of paying rent, but if due to some confusion you get a notice from the Income Tax Department, then you may need a bank statement. If you pay in cash, then you will not be able to provide this proof. In such a situation, try to pay rent online only.
4- Make sure to take the PAN of the landlord
You need the landlord’s PAN while filing ITR or while claiming HRA from the company. This helps the Income Tax Department to know who actually received the rent you paid.
The Income Tax Department has found irregularities
Some time ago, the Income Tax Department had noticed some irregularities in claiming HRA. The Income Tax Department has found that many employees claimed HRA by giving wrong PAN details. There have also been some cases in which many employees have entered the same PAN details, due to which they were also sent notices. Sometimes it also happens that the Income Tax Department sends notices to people due to not getting sufficient evidence. In such a situation, it is important to have these documents with you, so that you can easily present your case in front of the Income Tax Department.
