New Delhi, March 27 -- The Income Tax Department is sending notices to salaried taxpayers who claimed House Rent Allowance (HRA) but did not deduct tax at source (TDS) on rent payments in past financial years. The notices ask taxpayers to verify their HRA claims-and if incorrect, amend their tax returns before the 31 March deadline.
For those with legitimate HRA claims, the issue isn't proving authenticity-it's the potential liability for failing to deduct TDS on rent, said Prakash Hegde, a Bangalore-based chartered accountant.
"Those who have claimed genuine HRA don't need to file an updated return," said Bhawna Kakkar, founder of Kakkar & Company, Chartered Accountants.
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