ITR Filing: I didn't file rent receipts and didn't claim HRA through employer. Can I claim it at the time of filing income tax return?

The House Rent Allowance (HRA) is a vital part of a salaried employee's income. It offers tax exemption on expenses linked to rented accommodation under the old tax regime. Remember the exemption is not valid if you've chosen the new tax regime from FY 2020-21 (AY 2021-22). But what happens if you missed claiming HRA from your employer in HRA and did not submit the receipts? 

Claiming HRA during ITR filing

If you've overlooked submitting rent receipts to your employer, fret not. You can claim HRA while filing your Income Tax Return (ITR)[7]. Ensure you present the right HRA amount from your employer and the exempt sum under Section 10(13A) when doing so. The disclosure criteria differ between Forms ITR1 and ITR2.

Also, if you've paid all other taxes in full, this HRA claim could result in a tax refund. Tax authorities might still probe to ensure all HRA exemption conditions are met. Therefore, keep all supporting documents (e.g., rental agreement, rent receipts) handy. If your yearly rent exceeds Rs 1 lakh, make sure you also have the landlord’s PAN. 

Get rent receipts signed by landlord

To encapsulate, if you stick with the old tax regime and aim to tap into HRA benefits, don't delay in getting the rent receipts signed by your landlord. This strategy can aid in tax saving. Employees who haven't provided their HRA paperwork to their employers can still update (or correct) their rent details while filing their ITR. 

Rent receipts play a pivotal role in claiming the HRA exemption. They validate your rental expenditure. Claiming HRA without any rental receipts or even a rental agreement can be fraught with risk. 

HRA claim and process in ITR

While it's advisable to claim HRA through your employer by submitting rent receipts, it's still possible to claim it during ITR filing if you missed providing them. You will need to file a revised ITR in order to claim HRA and will have to pay the prospective tax without any deductions at first. Keep in mind the tax regime you opt for, as the new one eliminates the HRA tax exemption. So, carefully consider your options and optimise your tax-saving strategies.