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Jul 10, 2025
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Can your HRA tax exemption claim get rejected despite submitting all proofs?
House Rent Allowance (HRA) is a financial benefit that only salaried individuals can claim for tax deduction if their salary includes an HRA component. Even though you don’t need to submit proof in your Income Tax Return (ITR) to claim HRA benefits, taxpayers should still tread carefully. All HRA-related documents must be provided to the employer, and in the past, many employees have been caught submitting false information about HRA to their employers. This kind of dishonesty can cause troubles for the salaried employees.
Sometimes the information isn’t actually false but just a bit odd. For instance, a husband paying rent to his wife, who has no income other than that rent, and then claiming HRA tax exemption. While this can be allowed but at the same time it raises questions about the nature of the transaction and could lead to a more detailed examination (scrutiny).
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