Income Tax Dept Finds Rent Mismatch in HRA Claims
By Rediff Money Desk, NEWDELHI Apr 08, 2024 21:06
The Income Tax Department has found discrepancies between rent paid by employees and rent received by landlords for FY 2020-21, leading to data analysis of high-value cases.
New Delhi, Apr 8 (PTI) The Income Tax Department on Monday said it has found mismatch between rent paid by salaried employees vis-a-vis rent received by the recipient for 2020-21 fiscal year and conducted data analysis for high-value cases.
Refuting reports that there is a special drive by the department to reopen cases regarding House Rent Allowance (HRA), the Central Board of Direct Taxes (CBDT) said the verification of rent paid by the tenant and the rent received by the recipient was done in a "small number" of cases.
"Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21.
This verification was done in a small number of cases without re-opening bulk of cases, especially since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024," the CBDT said in a statement.
The objective of the e-verification was to alert cases of mismatches of information for FY21 only without affecting others, it added.
The CBDT said certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the department as part of its routine exercise of verification of data.
In such cases, the department has alerted the taxpayers to enable them to take corrective action.
HRA forms part of salary income, or CTC, and is calculated in taxable income. However, if an employee lives in a rented accommodation, he/she can claim income tax exemption for HRA received during the year by submitting valid rent receipts.
However, the tax exemption is not available in case taxpayers opt for the new tax regime, which doesn't have exemptions.
Refuting reports that there is a special drive by the department to reopen cases regarding House Rent Allowance (HRA), the Central Board of Direct Taxes (CBDT) said the verification of rent paid by the tenant and the rent received by the recipient was done in a "small number" of cases.
"Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21.
This verification was done in a small number of cases without re-opening bulk of cases, especially since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024," the CBDT said in a statement.
The objective of the e-verification was to alert cases of mismatches of information for FY21 only without affecting others, it added.
The CBDT said certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the department as part of its routine exercise of verification of data.
In such cases, the department has alerted the taxpayers to enable them to take corrective action.
HRA forms part of salary income, or CTC, and is calculated in taxable income. However, if an employee lives in a rented accommodation, he/she can claim income tax exemption for HRA received during the year by submitting valid rent receipts.
However, the tax exemption is not available in case taxpayers opt for the new tax regime, which doesn't have exemptions.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 8.08 ( -3.92)
- 65128261
- Thinkink Picturez
- 1.77 ( -0.56)
- 47207415
- Sunshine Capital
- 2.32 (+ 4.98)
- 18775443
- Evexia Lifecare
- 4.07 (+ 3.30)
- 16083406
- Cressanda Railway
- 11.19 (+ 4.97)
- 15151945
MORE NEWS
Samsung One UI 7 Beta: AI, Security Upgrades in...
Samsung launches One UI 7 beta in India, featuring AI enhancements, security updates,...
Canara Bank Gets RBI Nod for Life Insurance...
Canara Bank secures RBI approval to divest its stake in Canara HSBC Life Insurance and...
Passport Seva Kendras at Post Offices:...
India to increase Passport Seva Kendras at post offices to 600 by 2028-29, expanding...