ITR Filing 2025: For salaried employees, House Rent Allowance (HRA) is a means through which they can get relief from tax. But this time the Income Tax Department has made some important changes regarding HRA. Can HRA exemption be availed this time without rent receipt? Know the new rules
ITR Filing 2025: As the last date for filing Income Tax Return (ITR) is approaching, the rush to save tax for employed people has also intensified. For salaried employees, House Rent Allowance (HRA) is a means through which they can get relief from tax. But this time the Income Tax Department has made some important changes regarding HRA. If you live in a rented house and you have HRA in your salary, then this time take exemption while filing ITR. But keep in mind that now the rules have become stricter than before, especially for those paying higher rent. So keep all the necessary documents ready in time. So that, there is relief in tax and there is no problem in filing returns.
What is HRA and how is it tax free?
HRA i.e. House Rent Allowance is a part of your salary, which is given to those who live in a rented house. Under Section 10(13A) of the Income Tax Act, partial or full tax exemption can be available on HRA. But this exemption will be available only when certain conditions are met.
- Under what conditions is HRA claim available?
- You are employed and HRA is included in your salary.
- You are not living in your own house, but in a rented house.
- You have chosen the old tax system (there is no exemption on HRA in the new tax system).
When can HRA be claimed without a receipt?
This question is in the mind of many people. Is it necessary to give a rent receipt every time? The answer is – no. If your annual rent is less than Rs 36,000 i.e. less than Rs 3,000 per month, then you can claim tax exemption on HRA even without receipt. In this case, the Income Tax Department does not ask for any document.
What documents will have to be submitted for higher rent?
If you pay rent of more than Rs 8,333 per month. That is, if the rent is more than Rs 1 lakh annually, then the rules become strict for you. Now these documents will be required to claim HRA.
- Rent Receipt
- Proof of rent payment (eg bank statement, UPI payment etc.)
- Landlord’s PAN number
- If you are unable to provide these documents, then your HRA claim may be rejected or you may also get a notice of tax evasion.
How is HRA exemption calculated?
The Income Tax Department calculates HRA exemption in three ways and the minimum amount among these three is the exemption.
- Actual HRA included in your salary
- Total rent – 10% of basic salary
- 50% of basic salary in metro cities (40% in non-metros)
Why has the focus on HRA increased?
This year a new validation system has been added to the ITR form. Whatever information you provide in it, the system will check it immediately. If you claim HRA but do not provide the necessary documents, your claim may be rejected and you may be considered a tax defaulter.
Who will get the benefit of HRA?
- Salary earners whose salary includes HRA.
- Those who have opted for the old tax system.
- Those who do not live in their own house but live on rent.
- Those who have a record of rent agreement and payment.
Things to keep in mind
- No receipt is required for rent less than Rs 3,000 per month or Rs 36,000 per year.
- PAN, receipt and payment proof will be required for rent more than Rs 1 lakh per year.
- Those who choose the new tax system do not get HRA exemption.
- Providing wrong information may result in a penalty or claim rejection.
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