ITR Filing 2025: Income Tax Department has changed the rules for claiming HRA, know how much you can claim without receipt
After the change in Income Tax rules in 2025, rent receipt and PAN have become mandatory for claiming HRA, failing which the exemption may be rejected.
ITR Filing: As the last date for filing Income Tax Return (ITR) is approaching, the preparations related to tax saving are intensifying for the employed people. House Rent Allowance i.e. HRA is an important means of saving tax for taxpayers, but this time some major changes have been made in its rules. Especially for those who pay rent but are unable to provide receipt or PAN number of the landlord.
The Income Tax Department has added a validation system to the ITR form for 2025, so that fake or incomplete information can be caught immediately. If the rent is low, then some exemptions can still be available, but it has become mandatory to provide solid proof if you pay more rent. In such a situation, it is very important to know how much HRA exemption you can get without a rent receipt and under what circumstances your claim can be rejected.
Is HRA claim possible without rent receipt?
According to the rules of the Income Tax Department, if you live in a rented house and your salary includes HRA, then you can avail tax exemption. The good news is that if your annual rent is less than Rs 36,000, i.e. monthly rent is less than Rs 3,000, then you do not need to submit rent receipt. In this case, you can claim exemption on HRA without any document. But keep in mind, this exemption will be available only if you actually live on rent and HRA is a part of your salary. If you live with your parents and pay them rent, this rule can also apply, provided you have proof of rent.
Strict rules on high rent
If your annual rent is more than Rs 1 lakh, i.e. monthly rent is more than Rs 8,333, then the rules of the Income Tax Department become more strict. In this case, it is mandatory for you to provide rent receipt, proof of rent payment (such as bank transaction or UPI payment) and PAN number of the landlord. Without these documents, your HRA claim may be rejected. This year a new validation system has been added to the ITR form, which automatically checks the information given by you. If you claim high rent without documents, the tax department can send you a notice or you may be considered guilty of tax evasion. Therefore, those living on high rent should keep all the documents ready.
Method of HRA exemption calculation
The amount of tax exemption on HRA is decided on the basis of three rules, and the lowest of these is the exemption. First, the actual HRA received in your salary. Second, the rent you pay, from which 10% of your salary is deducted. Third, 50% of your salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% in a non-metro city. For example, if you pay a monthly rent of Rs 15,000 in Delhi, your basic salary is Rs 50,000 and you get an HRA of Rs 20,000, your exemption can go up to Rs 1.2 lakh. But if you are unable to produce a rent receipt and your rent is less than Rs 36,000, you can get exemption on a smaller amount even without documents.
The post ITR Filing 2025: Income Tax Department has changed the rules for claiming HRA, know how much you can claim without receipt first appeared on informalnewz.
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