HRA Claim Tightened, ITR-1 & ITR-4 Utility Updated For FY 2024-25: Here's What Taxpayers Must Know

HRA Claim Tightened, ITR-1 & ITR-4 Utility Updated For FY 2024-25: Here's What Taxpayers Must Know Newspoint | 12/06/2025 20:39:16

New Delhi: The Income Tax Department has released the new Excel utilities for ITR-1 and ITR-4 for the financial year 2024-25 (assessment year 2025-26).

Extra Details Needed for HRA Claim

If you live in a rented house and want to claim HRA (House Rent Allowance), you now need to give more information in your tax return. This includes your landlord’s PAN number.

When Is Landlord's PAN Needed?

If your yearly rent is more than Rs 1 lakh (which is over Rs 8,333 per month), you must give your landlord’s PAN to your employer. If you don’t, you won’t get HRA tax benefit.

Giving a wrong PAN can lead to your HRA claim being rejected or even a tax notice.

Rent-Based Rules

If your total rent is Rs 1 lakh or less per year, landlord's PAN is not required.

If rent is over Rs 50,000 per month, you must:

- Give landlord’s PAN

- Also deduct TDS (Tax Deducted at Source) on the rent

What If Landlord Has No PAN?

If your landlord doesn’t have a PAN, you must provide:

Their name

Address

A written declaration that they don’t have a PAN

If the landlord refuses to share their PAN even though they have one, you can’t claim HRA.

New HRA Section Added in ITR Utility

Earlier, HRA-related info was only given to employers. But now, in the updated ITR-1 and ITR-4 Excel utilities, you must fill in the following details yourself:

Place of your job

HRA amount received

Actual rent paid

Basic salary

Salary as per Section 17(1)

HRA Tax Benefit Only in Old Tax Regime

Remember, HRA exemption is only available under the Old Tax Regime. If you opt for the New Tax Regime, you can’t claim HRA. So choose your tax regime carefully.

What About Self-Employed People?

If you are self-employed or your salary does not include HRA, you can still get rent-related tax benefits under Section 80GG. But the rules are different and you must meet certain conditions.

Be Prepared

If you want to claim HRA while filing your ITR, collect your landlord’s PAN and other required info on time. If your rent is over Rs 1 lakh per year and you don’t follow these rules, your tax benefit may be denied and you could get a notice from the tax department.