Many salaried individuals receive House Rent Allowance. This is one of those tax exemptions that helps you reduce your tax liability. It is essential to know that you can claim House Rent Allowance or HRA only when you live in the rented house. If you are living in your own house then you cannot avail this exemption.
You can view your HRA exemption in your tax projection statement that is provided to you by your employer at the beginning of the Financial Year, you can trace this information way before you receive your Form 16 from your employer. The employer deducts the HRA from salary. When it comes to filing of ITR, you can view the deduction in Part B of your Form 16.
The best way by which you can claim HRA or House Rent Allowance is by mentioning your HRA exemption amount in the declaration form provided to you by your employer at the start of a financial year. The HRA Exemption, under section 10(13A), is generally availed by the employee through the payroll by providing requisite supporting documents and also, meeting the necessary conditions. To claim House Rent Allowance, you are required to have relevant documents with you.
The supporting documents for claiming HRA Exemption are your rent agreement, rent receipts etc. If the amount of rent exceeds Rs 1 lakh per annum the PAN of the landlord is also necessary. In case the landlord does not have a PAN, a declaration to this effect should be obtained from him, along with his name and address details.