How to declare HRA?

HRA, short for House Rent Allowance, is the compensation provided by employers to employees for the rent they pay to live near their workplace. To claim the HRA deduction under Section 10 (13A) of the Income Tax Act, employees need to provide specific details such as the amount of rent paid, the PAN and address of the landlord, city of residence, and more. Now, let's explore the process of declaring HRA exemption.

Navigate to the My Finances (1) menu and click on Manage Tax (2). You will be directed to the Declaration (3) tab where you have to select House Property (4). 

 

Select the option which suits your requirement:

1. +Add Rented Residence (1), if you are residing in a rented property owned by another individual. 
2. +Add Own Residence (2), if you are residing in your own property.

1. Rented Residence

Select the From & To month (1), then fill in the details like Rent Amount, Address, City and attach the Rent Receipts or Agreement (2) & click on Next (3).

Enter the Owner Name (1) and Owner's Address (2). If the owner's address is the same as your rental address given on the previous page then, you can check the option that says "Owner address same as rental address". You can then enter either the Pan Number of the owner or Upload the Rent agreement (3) and click on Save (4).

2. Own Residence

While adding the Own residence details, select the Occupancy Type (1) out of the three options displayed in the side pop-up and click on Next (2).

Fill in the Residence Details (1) and add the Loan Interest amount (if any) & click on Save (2).

Please be advised that HRA exemption will be applicable only if you are under Old Tax Regime.

We hope you found this article helpful. You may also be interested in learning how HRA component affects the tax calculation and exemption.