ITR
Deductions and HRA questioned in scrutiny
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
The officer can ask for proof of every deduction and exemption you claimed. Without proof, the claim can be disallowed and penalty proposed.
Provisions and law
- Sec 80C, Income-tax Act 1961 (now Sec 123, Income-tax Act 2025)Deduction up to ₹1,50,000 for specified investments and payments under the old regime.
- Sec 10(13A), Income-tax Act 1961 (now Sec 11 (Schedule III, Table Sl. No. 11), Income-tax Act 2025)HRA exemption for salaried employees paying rent.
- Sec 270A, Income-tax Act 1961 (now Sec 439, Income-tax Act 2025)Penalty for under-reporting or misreporting income.
Analysis
Give premium receipts, PPF passbook pages, ELSS statements, tuition fee receipts and rent receipts with the landlord's PAN where rent exceeded ₹1 lakh. Show rent was actually paid through bank transfers. Rent paid to a parent is possible but needs real payment and the parent showing it as income. Fake rent receipts are a common reason for penalty.
Conclusion
- List each deduction and exemption claimed.
- Attach proof of payment for each.
- For HRA, attach rent agreement, receipts and bank proof.
- Withdraw any claim you cannot support.
A Savvy can do this for you
Scrutiny assessment, Sec 143(2) (now 270(8))
₹4,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.