ITR Filing: HRA is the most important part of the salary slip of employed people. If you have chosen the old income tax system, then this is a very important thing for you. To save income tax, most people claim HRA on the rent paid for their rented house. However, some people also commit fraud in this, due to which the Income Tax Department sends them a notice if anyone is suspected. It is possible that you may also get such a notice. In such a situation, you have to be ready to respond to it and keep yourself safe. Let us know which 4 documents you must have to respond to the notice.
1- Valid Rent Agreement
You must have a valid rent agreement. Also, you should also keep in mind that the rent agreement should be under the Income Tax rules. For example, if your monthly rent is more than Rs 50 thousand, then TDS must be deducted from it. The rent agreement should state whether TDS will be deducted on rent or not and how it will be deducted. Apart from this, the rent agreement should contain all the basic details of both the landlord and the tenant. Also, the PAN details of both should be there.
2- Rent receipt
To claim HRA, you must have a valid rent agreement as well as a rent receipt. That is, you will also have to keep the receipt of paying rent to your landlord. The rent receipt proves that you have actually paid the house rent to the landlord. While claiming HRA, you have to submit the rent receipt along with the rent agreement.
3- Online rent payment statement
Although no one asks you about the method of paying rent, but if due to any confusion you get a notice from the Income Tax Department, then you may need a bank statement. If you pay in cash, you will not be able to provide this proof. In such a situation, many CAs and tax experts say that rent should always be paid online like UPI, net banking or credit card. This gives you a solid proof of paying the rent, which no one can deny.
4- Make sure to take the landlord’s PAN
You need the landlord’s PAN only when filing ITR or while claiming HRA in the company. This is how the Income Tax Department comes to know who actually received the rent you have paid. Even if you pay rent in cash, it is necessary to provide the landlord’s PAN, otherwise you will get less tax benefit. Let us tell you that if your total rent is more than Rs 1 lakh, then you must provide the landlord’s PAN, otherwise you will not be able to claim HRA on an amount of more than Rs 1 lakh. Keep in mind that this PAN should be correct. These days, the people to whom the Income Tax Department is sending notices had entered the wrong PAN.
If you get a notice, respond
If you also get a notice from the Income Tax Department regarding rent agreement or HRA, do not panic. Sometimes the Income Tax Department sends notices due to confusion. You just have to put your point in front of the Income Tax Department and tell them that you have all the documents and you will get relief from the notice.
