Be aware before submit fake rent receipts at your office to claim HRA, With Automatic H.R.A. Calculator U/s 10(13A)
If you are living in a rented house and using any fake documents for HRA claim then be careful.
Because from now on there will be a big trouble for those who are using fake rent receipts to claim HRA, as Income tax department have started asking for more document.
Many times it is seen that people claim for HRA by submitting fake rent receipts. This also helps to get them tax benefit. But now as there is increase in the number of fraud HRA claims, IT department has started to ask for some other legal proofs.
Download Automatic House Rent Exemption Calculator U/s 10(13A)
Documents which IT department can ask in case of verification
Before you know about the documents needed for verification purpose, lets understand what is HRA (for those who are new to this)
HRA i.e. House Rent Allowance is an amount or we can say a part of salary of an employee which an employer pays if the employee lives in a rented house. It is beneficial If you claim for HRA exemption then you need to submit some legal documents like a receipt or an agreement and ID proof of landlord. You can also claim for HRA exemption on your income tax by filling 12BB Form
If the IT department suspects that a person is providing fake receipts for HRA then they can ask for some other related documents. The list of documents which IT department can ask is as follows –
5 documents which IT department can ask in case of verification
- Copy of leave and license agreement
- Electricity bills
- Water supply bill
- Agreement or a letter from housing society
- PAN card of landlord if the amount is above Rs.,1,00,000.
or the employee as it lowers the tax which he/she pays on accommodation per year.
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