HRA Benefit: HRA is an allowance paid to every employee by his employer which is part of the salary and can be availed to reduce the tax burden.
Tax Rebate on HRA: The salary earner who lives in a rented house can partially or wholly take the benefit of House Rent Allowance (HRA) to reduce the tax burden. The amount received as Rent Allowance will be fully taxable.House Rent Allowance ie HRA is the allowance paid to every employee by his employer which is part of the salary.
Exemption is available under section 10
House Rent Allowance gives the benefit of tax exemption to the taxpayers on the amount paid towards house rent every year. The amount of HRA is required to be disclosed in the income tax return under section 10. Section 10(3A) is the relevant section, under which the amount of exempt HRA is shown. At the time of filing ITR, among the many necessary claims, the benefit under House Rent Allowance will also have to be disclosed in Form 16.
If you do not have PAN card of Landlord
It is very important to know that if you show rent more than Rs 1 lakh per annum to claim House Rent Allowance, then you will have to attach a photocopy of the PAN card of the landlord. Now the question arises what if you do not have the PAN of the landlord available with you?
If your landlord is not giving his PAN card details, then the question arises can an employee claim House Rent Allowance? On this, experts say that if the amount paid by the employee towards the annual rent is more than Rs 1 lakh per year, then it is mandatory for the employee to submit the PAN details of his landlord with the employer. But if the landlord does not have a PAN, then a declaration has to be filed by the employee with the name and address of the landlord.
But the employee who pays less than one lakh rupees annually to his landlord, it is not necessary to give PAN card of the landlord. He will only have to pay the House Rent Receipt as rent to his employer.
ITR filing date is December 31
It is also important to know that the last date for filing this income tax return is 31 December 2021. The department had given information by tweeting in September. Earlier this date was 30 September 2021. This decision was taken in view of the difficulties being faced in filing income tax returns in the new portal.
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