Forged rental income can be taken by income tax officers and you may have to pay penalties with the income tax due. Yes, the husband and wife can claim HRA separately for their respective shares, but the total rent claimed by the two individuals must not exceed $20,000. You must file supporting documents if the total rent you indicate for the whole year (12 months) is higher than INR 1 lakh. If the annual rent exceeds 1.00,000 USD per year, the worker must receive the owner`s PAN card. If the landlord does not have a NAP, you should get an explanation containing details such as the owner`s name, address, the amount of rent you pay and the length of the accommodation. No rent required for rents of less than 3 thousand per month. Only the HRA return is sufficient to request a tax exemption. No, HRA is only given for a rented house in the affected city of the workplace. c. You, your spouse or child minor or HUF of which you are a member, you do not have accommodation where you are staying, where you are performing your office or employment obligations, or are engaged in an activity or profession. They pay rent of more than 1 lakh per year, which is about INR 8,333 or more per month. No, the HRA is only paid for rent. Other royalties are therefore not included.

People who receive HRA and stay in rental accommodation can apply for leave. Let us look at the conditions to apply for such an exemption. Note that employees earning up to Rs 3,000 per month are exempt from rental income. Although — we recommend you keep it for your own drive. This decision is set out in CBDT Circular 8/2013 of October 10, 2013 and in letter 20/2015 of December 2, 2015. In order to grant the worker the exemption, the employer requires that the rental income be presented to them in good standing. At least three months of income are required to be submitted by the employee. If the worker`s claim for exemption is found to be legal, the necessary deductible benefit is passed on by the employer and the monthly source deduction (TDS) is reduced to the amount of the exemption. HRA Proof of rent is not required, but may be requested by the income tax officer if he or she has any suspicions about your rental income.

A valid tenancy agreement between the landlord and the tenant (in this case the employee) is a necessary document that must be submitted to the employer to claim tax benefits. The contract must have all the specific information about the type of accommodation, the rent to be paid, the duration of the lease, etc. Let`s understand that by an example. Samiksha works at an MNC in Bangalore. Although her company provides her HRA, she lives with her parents in her house and not in rental housing.