How to Claim Tax Exemptions while filing ITR?

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).

House Rent Allowance (HRA)

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

  1. Actual HRA Received or
  2. 40% (50% for metros) of (Basic + Dearness Allowance) or
  3. Rent paid (-) 10% of (Basic + Dearness Allowance)

You can use our HRA Tax exemption calculator for the same.

Also Read: Can I claim Tax Benefit on both HRA & Home Loan?

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.

HRA exemption while filing Income Tax Return (ITR)
HRA exemption while filing Income Tax Return (ITR)

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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Section 80C/80D Deductions:

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

Tax Saving Investment exemption while filing Income Tax Return (ITR)
Tax Saving Investment exemption while filing Income Tax Return (ITR)

Home Loan/ Education Loan Deductions:

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.

Also read: 11 Tax Free Components You Must have in Salary

LTA (Leave Travel Allowance):

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.

How to Claim Tax Exemption while filing Income Tax Return?
How to Claim Tax Exemption while filing Income Tax Return?

Points to Note:

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.

Also Read: How to Pay 0 Income Tax on Rs 20 Lakh Salary?

In case you were not aware of above provisions, you can file your revised return and claim tax refundBoth 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.

55 thoughts on “How to Claim Tax Exemptions while filing ITR?”

  1. 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?

    1. 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.

  2. 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!

  3. 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.

  4. 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

  5. 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.

    1. 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.

  6. My company given me a free accommodation in a single room in staff mess in a project site at Paradip and considered a part as perquisite. Whether the same can be considered as tax free under Temporary accommodation at project site. If yes, then under which section the same can consider for refund. Further company is not providing any newspaper allowance. But can I claim my news paper bill for exemption. If yes, then under which section.

    1. The company is right in showing company provided accommodation as perk as per I-T laws. Also you cannot claim tax benefit on newspaper until your salary structure mentions the same.

  7. Hi amit, thanks for your information, but i have one doubt, I have a residential property in the place where I am doing the Job,that property is brought on 10/10/2016 by taking the loan from the bank. Before 10/10/2016 I used to stay in rented house . Now can I claim HRA along with the housing loan interest as deduction for the AY 2017-18 the I had paid for the rented home. – I did not submit any documents to my employer relating to this rent paid.

  8. Hi Amit, I missed claiming LTA for the financial year 2016-2017 for the journey done on Jan 2017. Seeing this post I get that I can’t claim tax exemption on this while filing returns. Can I use this same trip for claiming exemption in the next financial year ?

    1. You can still claim your LTA as the LTA cutoff is calendar year and not financial year. Just speak to your HR/Accounts department!

  9. I have submitted wrong HRA document while initial filing and hence got rejected, can I submit the right document during ITR-V for the approval?

    1. You need submit any document while filing your returns. In case you submitted wrong HRA document to your employer you can file your income tax returns with the right figures. But remember to keep the documents handy in case asked by income tax department.

  10. My father is got retire from govt job last year and getting pension, Can retired person take benefit of LTA and Medical Reimbursement?
    Where person will submit proof or support documents?

    Thanks!

  11. While searching for LTA updates, i came across a post where it was mentioned that we can claim LTA but have to reduce it from Taxable income and there is no separate place to enter LTA value.

    Is this correct. I will lose out on a big amount if i am not able to enter LTA.

    1. As per me You cannot claim tax benefit on LTA while filing ITR as the travel bills have to be approved by employer! You might want to take second opinion from qualified tax experts/CAs.

  12. Excellent ITR saving tips especially for Salaried individuals to ensure they do not lose out on due to higher TDS

  13. Jagat Singh Thakur

    i received rs. *147000/- after deduction of rs. 3000/-(TDS) from LIC money back policy and the same has been reflected in my form 26AS also( other source of income) in addition to TDS salaries. During filling the online income tax return i could not understand where the amount of Rs. *147000/- has been shown/ taken into account so that the income tax on this account can be calculated @ 2% i.e. 3000/- as deducted by LIC. please help.
    Regards: Jagat Singh

    1. In case your LIC maturity amount is taxable, entire maturity amount would be taxed at your income tax slab. So in ITR it would go under income from other sources. The 2% deducted is TDS only and the actual tax liability can be more or less depending on your total income for the financial year.

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