{"id":270498,"date":"2025-03-31T06:07:05","date_gmt":"2025-03-31T06:07:05","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/31\/claiming-hra-exemption-but-tax-not-deducted-income-tax-department-sending-notices-penalties-explained-the-times-of-india\/"},"modified":"2025-03-31T06:07:05","modified_gmt":"2025-03-31T06:07:05","slug":"claiming-hra-exemption-but-tax-not-deducted-income-tax-department-sending-notices-penalties-explained-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/31\/claiming-hra-exemption-but-tax-not-deducted-income-tax-department-sending-notices-penalties-explained-the-times-of-india\/","title":{"rendered":"Claiming HRA exemption but tax not deducted? Income Tax Department sending notices – penalties explained – The Times of India"},"content":{"rendered":"
\"Claiming<\/div>


\n<\/p>\n

\n
\n
\n
\n
\n
\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n
Tax officials are requesting verification of claims submitted in previous Income Tax Returns (ITR). (AI image)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

Income tax<\/a> payers claiming House Rent Allowance (HRA) exemptions should take note. The Income Tax Department<\/a> is issuing notices to individuals who have sought HRA exemptions in their tax filings but have not paid the required Tax Deducted at Source (TDS) on their rental payments.
According to Section 194-I of the IT Act, when tenants pay more than Rs 50,000 monthly rent to a resident Indian landlord, they must deduct 2% TDS from the rent amount (previously 5% until October).
According to an ET report, Tax officials are requesting verification of claims submitted in previous Income Tax Returns (ITR). Taxpayers who need to correct their earlier returns have until March 31 to file an updated ITR to address any discrepancies.
Also Read | Income Tax slabs 2025-26: How you can pay ZERO tax with Rs 13.7 lakh salary under new income tax regime<\/a>
HRA claims without corresponding TDS payments on rent are deemed invalid. The requirement for TDS is based on the monthly rent value, not the HRA exemption claimed. TDS obligation applies even if rent exceeds Rs 50,000 for just one month.
The landlord’s PAN number must be included in the TDS challan. In cases where PAN is missing or inactive, the TDS rate increases to 20% under Section 206AA. For non-resident Indian landlords, the applicable TDS rate is 30%.
When should TDS be paid?<\/span>
The TDS payment timeline varies based on tenancy duration. For mid-year vacancy, payment is due within 7 days after the month’s end. For full-year tenancy, payment must be made within 30 days of the financial year’s end, regardless of payment frequency. <\/p>\n

\n