I need your advice on HRA that I can claim for this year. I have worked for 2 different Organisations this year and I have 2 form-16s with me. I left my previous company in the month of October 2014 and I forgot to submit my rent receipts while leaving the company. I had an HRA component in my salary but as I didn’t submit any rent receipts, I haven’t for HRA exemption in my form-16 at the end of the year. Is there any possibility to claim this HRA now?
Also, in my current company, I didn’t see any HRA component in my salary breakup and again this is not reflected in my second form-16 too. However, the HR has asked me to submit the rent receipts and I have submitted them in the month of Jan 2015 while submitting the other tax proofs. Now, I am not getting a proper response from HR regarding this and I am not sure even if they have a clear idea about this issue.
Based on my internet search since last couple of days, what I understand is that, when there is no HRA exemption/component available, we can use the section 80GG and claim a total of 24000/- per year. But for this, do I need to give any declaration and if yes, how to send this declaration copy to the IT department?
Can you please suggest me what are all the possibilities I have for claiming the HRA now apart from 80GG?
Thank you very much in advance!
Shravan-You can claim the HRA up to the period of your last employment. From new employment onward, yes if HRA component not present in your salary then you can claim such rent as a deduction under Sec.80GG. So in your case, you have to club both Form 16 and file IT return separately.
For your information, you can’t plainly claim Rs.24,000 yearly rent under Sec.80GG. There are certain rules to it and are as below. Eligibility for Sec.80GG will be least of the following.
1) Rent paid minus 10 percent the total income.
2) Rs 2,000 per month.
3) 25 percent of the total income
You need claim deduction under the head of Sec.80GG. No proof is required.
Thank you very much for your quick and prompt reply! This will really help me save some tax and get the refund!