I joined a company in December 2023. I did not declare rent that I was paying to my mother to my employer.
I know I can claim HRA when filing ITR Return if I have rent receipts, rental agreement and paid rent via bank transfer and my mother shows rental income in her return.
But importantly my question is since my employer did not report it in Form 16 and I claim HRA, will it draw scrutiny on my IT return? Will the scrutiny be limited to HRA or will my entire return be scrutinized ?
Note: I also failed to deduct TDS from the rent I was paying to my mother.
Thank you
Hello @V_V_Enterprises
You can claim HRA in ITR irrespective of whether it was reported to employer.
There is no clear guideline for the case being selected for scrutiny. It is at the discretion of the AO if he finds unusual in your ITR then he may issue a scrutiny notice.
Also, if the rent paid was more than 50k per month, TDS has to be deducted at 2% of the rent amount.
In your case, we would recommend you to pay TDS, file TDS return and claim HRA in your ITR. Due date to file TDS return for last FY 2024-25 is April 30, 2025.
Thank you.
If your rent being claimed is more than 50k per month, based on the current situation, you can expect a notice.
Since it is a relative to whom you have paid, it would not be easy to prove and defend!
Consult your CA!