To claim HRA from their employers, many salaried employees usually use either rent receipts or rent agreement as proof of the rent paid in a financial year. However, tax experts point out that assessing officer of the income tax department can reject HRA tax exemption claim if any one of the documentary evidence is missing.
A significant number of individuals have adopted a casual approach towards filing their income tax returns (ITRs). In the past, these practices often went unnoticed, allowing many to evade the scrutiny of the tax office. However, the situation has changed, and individuals might not be as fortunate now as the income tax department employs sophisticated software to flag suspicious returns., Personal Finance News, Times Now
House rent allowance (HRA) tax benefit is available only to salaried individuals who are planning to opt for old tax regime. Further, this tax benefit can be claimed only if they have the HRA component as part of their salary structure and is staying in a rented accommodation. Self-employed professionals cannot avail this deduction. HRA tax exemption is not available under the new tax regime.
The Bombay High Court on Thursday directed the Maharashtra government to handover possession of two South Mumbai flats back to the owner, a 93-year-old woman, over eighty years after they were.