There are several allowances which a taxpayer gets, among them one of the most common allowances is the (HRA)House Rent Allowance which is received by the salaried class. In case you are living in a rented apartment or paying rent for the accommodation of your parents, then, in that case, you can claim an exemption for the same.
If you fail to submit important documents like your rent agreement, rent receipts to your employers, then, in that case, the TDS amount that is deducted by your employer will be more. Well, if you are worried after knowing this, then worry not as you can claim this exemption while filing your Income Tax Return.
In the Income Tax return forms that are notified by the Central Board of Direct Taxes or CBDT for the Financial Year 2018-19, require the taxpayer to provide the detailed break-up of his/her salary. This year ITR-1 form requires you to provide the details of the salary excluding allowances, allowances not exempt from tax, and so on. You are also required to give details of the income received by you that are exempted from tax and the various sources of Income you have for the relevant Financial Year.
In order to claim the HRA exemption, you are supposed to calculate how this allowance is taxable. The minimum tax-exempt portion of HRA received will be calculated based on the city you are living in and the HRA you are receiving from your employer. Once you have calculated the taxable portion of House Rent Allowance, you will have to claim this benefit in your Income Tax Return. Remember to choose the ITR form carefully as selecting the wrong ITR Form will lead you to your return being termed as defective and you will have to file it again.
While filing ITR-1 Form online on the e-filing on the Income Tax Department’s official e-filing portal, you are required to report the details related to HRA in tab-5 under the ‘Taxes Paid and verification’ section.