HRA Claim Mistakes: There can be many mistakes while claiming HRA, which should be avoided otherwise you will not be able to get the full benefit of this tax exemption component.
HRA Claim Mistakes: Mistakes in claiming HRA can prove to be costly
In the old tax regime, people filing income tax returns are required to provide investment proof and a major component for this is HRA i.e. House Rent Allowance. By claiming HRA, a large section of the salaried class tries to save their tax, for which they usually claim HRA by giving rent slip. However, to claim HRA, many times employees resort to such proofs in return of which the employer can reject the claim. Keeping this in mind, we are telling you which things should be kept in mind which you should avoid.
HRA Claim Mistakes: Avoid these mistakes while claiming HRA
Do not depend only on rent receipts
Often employees submit rent receipts to claim HRA in their office. These do not guarantee exemption from tax deduction in any case and apart from these, you should also submit some solid documents in your favor like bank account details etc.
Lack of rent agreement can create problems
Many times, to claim HRA, employees mention their parents, brother or any other relative etc. and say that they have not made a rent agreement. If the matter is ever investigated and the rent agreement is not found, then your HRA deduction can be rejected.
Paying in cash can give you headache
If you have paid the landlord in cash and you do not have proof of it (not even a receipt), then your HRA claim can be rejected. You should always transact the rent into the landlord’s bank account instead of making cash payments and should have a bank statement proving this.
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