HRA Declaration Guide: Claim Your Tax Exemption Easily

HRA Declaration

TAX COMPLIANCES

HRA Declaration

Let employees declare rent paid and claim HRA exemption — with landlord PAN capture, metro rules, and proof upload.

HRA
👥 WHO USES THIS
Employees claiming HRA exemption
Payroll admins validating HRA
Finance enforcing metro rules
✨ WHAT YOU'LL ACHIEVE
Capture monthly rent accurately
Apply metro or non-metro caps
Claim valid HRA exemptions

House Rent Allowance (HRA) Declaration enables employees to declare the rent paid for their accommodation in order to claim tax exemption under the Income Tax Act. Employees are required to provide details such as the landlord's name, address, PAN (if applicable), rental amount, and rental period. Proof of rent payment (like rent receipts or rental agreement) may be required as per organizational policy or statutory guidelines. The declared and verified amount will be considered during payroll processing for HRA exemption calculation.


  • Navigate to Tax and Statutory Compliances → Tax Declaration → HRA Declaration

  • Click the +Add button and choose the employee name from the dropdown list.

  • A pop-up warning will appear if the employee has chosen the New Regime, stating that declarations will not be considered for tax exemptions.

  • Click the +Add button under Rental Details.

  • A pop-up will appear to enter the Month, Total Rental Amount, Landlord Name , Landlord Address and if the Rental amount per annum is more than Rs.1,00,000/- then application will enforce the Landlord PAN.

  • At the start of the financial year, the application does not enforce proof submission.Proof will be required based on the configured proof enforcement month.

  • Click Add and Submit Declaration.

  • The exempted amount will be considered for tax calculation as per Government norms will automatically be calculated.

  • To edit the existing declaration, select the required record and click the Edit button.Click the Edit icon to make changes.After editing, click Declare and then Submit Declaration.

  • If an employee is relieved during the financial year, it is mandatory to submit proof for the declared investment categories. In case the proof is not submitted, all investment declarations must be rejected, and the final payroll run will deduct TDS without considering any exemptions.

  • To submit proof for a declared investment category, select the record and click the Edit button. Then, click the inner Edit icon, choose Add Documents (multiple documents can be uploaded), and finally click Declare followed by Submit Declaration.



Fig: Warning message for the HRA Declaration

Fig: Add- HRA Declaration

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