📢 Enhanced Disclosure Requirements for HRA Exemption | AY 2025-26

The Income Tax Department has introduced enhanced disclosure requirements for individuals claiming House Rent Allowance (HRA) exemption under Section 10(13A) in the Income Tax Return (ITR) forms.

🧾 What’s New?

If you are claiming an HRA exemption, you’ll now be required to report a detailed breakup of the following:

1. Place of Work – Metro or Non-Metro city (important for calculating the 50% or 40% limit)

2. Basic Salary + Dearness Allowance – To determine the eligible exemption

3. Actual Rent Paid – Must be reported clearly

4. Actual HRA Received – As per salary structure

5. Applicable Limit – 50% of salary if metro, 40% if non-metro

This will help the system automatically calculate the least of the three conditions under Rule 2A, ensuring a precise and standardized HRA exemption.

🚫 Is This a Compliance Crackdown?

No. This is not about stricter scrutiny or new eligibility norms.

✅ It’s simply a move towards better transparency and consistency in tax return processing.