Income Tax Act 1961 provides for employees to claim deduction against house rent paid, even if HRA is not part of their salaries. The taxpayer has a choice either to claim exemption of HRA or The tax-exempt portion of HRA can be reported under the head, ‘Allowances exempt u/s 10′ in the ITR 1. From the drop down menu, select ’10 (13) – Allowance to meet expenditure incurred on house rent’. You are required to copy the tax-exempt portion of HRA from Part-B of Form-16 from the ‘Allowances exempt under section 10’ and Salaried employees in India can claim tax deductions on the house rent allowance (HRA) component of their monthly salary under Section 10 (13A), Rule number 2A of the Income Tax Act. However, to claim this exemption, taxpayers must meet certain requirements. Conditions to claim rebate under Section 10 (13A) 1.1. What is HRA? Let us first understand what an HRA exactly is. HRA is a special allowance paid as a part of one’s salary by his employer to meet the rental expenses of accommodation in that city. 1.2. Conditions for claiming HRA exemption HRA is fully taxable in the employee’s hands under both the new and old regimes of the Act. In order to claim HRA tax exemption, you must reside in a rented apartment. It is not practical to claim a deduction for all of the HRA benefits paid to you. It is only possible to claim the lowest of the annual rental amount minus 10% of basic salary, HRA paid by the employer, along with 40% and 50% of your salary, depending on where you live Submitting HRA receipts and other required supporting documents to the employer is the best way of ensuring that the claim would be hassle-freeYou will have to submit details of your landlord's Step 10: File Your ITR. You are now ready to e-file your income tax return without Form 16. Don't forget to e-verify it within 30 days of filing, as the time limit for verification has been For filing HRA (House Rent Allowance) claims return, providing PAN card information is made mandatory by the government of India to the employees. As Income Tax Department has laid down a circular via CBDT (Central Board of Direct Taxes) that where the annual rent paid is more than ₹ 1,00,000 per annum, it is mandatory to report the PAN of landlord to the authority to claim exemption. 7QXCDW.