How to Claim Tax Exemption while filing Income Tax Return?
There are times when some salaried tax payers are not able to claim tax exemption as they were not able to submit the required documents within timelines. Generally companies start asking for the tax exemption documents like investment proof, rent receipt, Loan payment certificates etc from January on wards. But in case you were not able to submit the proof and your employer has deducted excess tax, you need not worry.
You can claim some of these exemptions while filing your income tax return (ITR).
You need to submit rent receipts, PAN card number of landlord (or declaration in case of no PAN card) and in some cases rent agreement to your employer to claim tax deduction against HRA.
In case you did not submit your documents before the deadline, your employer would not give tax exemption on HRA and deduct tax accordingly.
But the good news is you can claim HRA exemption even while filing your tax return.
You need to calculate the amount of HRA exemption which is minimum of
You can use our HRA Tax exemption calculator for the same.
The next step is to subtract the above HRA exemption from the total taxable salary. This is the new “total taxable salary” to be used for filing your tax returns.
You need not submit any of the documents to the income tax department but will have to keep it safely with yourself in case your Assessing Officer asks for them.
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Here are some posts which can help you with e-filing of ITR 2019:
1. 9 Most Important Changes in ITR Forms for AY 2019-20
2. Calculate your Tax liability for FY 2018-19 (AY 2019-20)
3. Download 44 page slideshow showing all tax exemptions
4. Which ITR form to fill for Tax Returns for AY 2019-20?
5. How to Claim Tax Exemptions while filing ITR?
6. Use Challan 280 to Pay Self Assessment Tax Online
7. Form 26AS – Verify Before Filing Tax Return
8. 5 Ways to e-Verify your Income Tax Returns
9. What if You DO NOT file your Returns by due Date?
10. Can I file my Last Year Tax Return?
11. Why and How to Revise Your Tax Return?
12. What does Intimation U/S 143(1) of Income Tax Act mean?
13. What happens after you file your ITR?
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In case you did not submit your investment proof for eligible instruments under section 80C like PPF, ELSS, Insurance etc you can claim these exemptions while filing your ITR. You can also claim Section 80D Deductions for Medical Insurance Premium paid for self and parents.
All you need to do is mention the investments in ITR. Again you need not send any proof to income tax department but will have to keep it safely with yourself in case your Assessing Officer asks for them.
Also Read: Best Tax Saving Investments u/s 80C
Again fill the relevant details in corresponding sections to claim the deduction in ITR to claim exemption, in case you had not submitted the relevant proof to your employer.
LTA is tax free in case you submit relevant travel bills to your employer. In case you have not done so and the employer would pay it after deducting tax. You cannot claim tax benefit on LTA while filing ITR.
For claiming any of the eligible tax exemption as above, you should not submit any document to Income tax Department. However keep the proofs safe with you as it may be asked by Income tax officer while scrutinizing your returns.
The IT Department can ask for above proofs up to six years from the year of assessment.
In case you were not aware of above provisions, you can file your revised return and claim tax refund. Both online and offline returns can be revised. An online return can be revised only online, and an offline one can be revised offline.
There is no limit on number of times you can file revised returns provided it is done within the prescribed time limit.
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View Comments
Dear Amit Kumar,
Salaried employee - residing in rental house - no other sources of income -
ITR 1 insists for selection of self occupied property or let out property. In the above case the assessee has no self occupied property or let out property.
which ITR form to be filed for FY 2017-18.
Please guide.
Regards,
Nagarajan v
You need to fill ITR 1
Correct, ITR 1 has to be selected.. But question is which option have to be selected .. In above case, its not Self Occupied Or let out.... ???
Dear Amit,
While e filing the return in ITR 1, selection of self occupied property or let out propertyseems imperative. If the given option is not selected the page remains not validated. How to resolve this In the above where assessee has no self occupied property or let out property.
LTC/LTA is exempted from tax??If so under what sec,law or authority??
LTA/LTC is exempted under section 10(5) of Income-tax Act
Hi Amit,
i have two doubts..
1. I'm about to fill ITR for 17 -18, at the time of declaration my rent was 8000/- but before 3 months i got shifted to another house of rent 10000/-.. can i get that benefit while filling ITR now..? and if yes then under which section i have to put that amount and how much amount i have to put.?
2. Our Employer circulated one communication one month before that we can Claim Professional Development Allowance in TDS. in which section we can put it...?
1. You have to deduct the HRA eligible amount from salary and put it at "income from salary"
2. Ideally Professional Development Allowance should have been accounted in Form 16 by employer. If not you'll have to deduct it from salary before putting it at "income from salary"
Hi Mr Amit
I am a pensioner with income of 4,32,000/- for FY 2016-17. Now I want claim House Rent of Rs 6500/- pm under 80GG. I have a doubt as to how much I need to mention in the Return.
Should I mention 6500x12 directly or need to check with three options ie 5000/- pm, 10% less income or 25% of total income.
Please advise and also let me know how much I can claim under 80GG.
Thanks
You'll need to mention the final amount as follows:
Minimum of the below three amount:
Rs. 5,000 per month - Rs 60,000
25% of annual income – 25% * 432000 = Rs 108,000
(Rent Paid - 10% of Annual Income) = Rs 34,800 (78,000 – 43,200)
You'll fill Rs 34,800 against 80GG row in your income tax returns!
You can get more details about Section 80GG here.
how to claim benefit under section 115h while preparing ITR2 as there is no place where we can give choice
My father is receiving pension after TDS deduction from state government. Whether we need to file ITR?
He didn't received Form 16. If we need to file the return, can we do reverse calculation and arrive at the Taxable Income?
You can collect Form 16 from the bank disbursing his pension. You can also do reverse calculation and check Form 26AS to find your income tax liability and file tax return accordingly.
Thank you very much.
Hi Amit,
In my pay slip HRA is 8829 Rs and I have submitted 8300 Rs per month proof but in form-16 HRA is 6835 Rs .
Will you please let me know how can I get tax benefit as 8300 Rs/month for HRA in ITR.
Looking forward for your response.
Thanks!
In form 16 HRA might have been mentioned after this calculation -> Rent Paid - 10% of basic salary
My salary is Rs.539918. After HRA and conveyance exmption it is Rs.456573. In ITR-1 I have entered Rs.456573 in the income column. Whilr filing ITR it shows that 'Amount of salary disclosed in the income details/part BTI is less than 90% of salary reflected in TDS-1. Where have to i fill the HRA and conveyance exemption. Please reply.
Dear Amit
if i received HRA from my employer but couldn't produce rent receipt at time and that became taxable than which ITR form is suitable to claim HRA TAX EXEMPTION i.e. ITR1 OR ITR2
ITR 1
Dear Amit,
Further to my previous query, our company is providing Driver Allowance, Car Washing Allowance & Car Running expenses. How I can get the tax exemption against the same.
For car/driver allowances you need to submit relevant bills to your company - as per their format. It would be automatically taken care in Form 16 issued by employer.