Claiming HRA for hometown while working elsewhere? This year, that could cost you

Planning to claim HRA or deductions under sections like 80C or 80D in this year’s ITR? You’ll need more than just numbers—now, the government wants paperwork, addresses, and pinpoint accuracy.

In a LinkedIn post, wealth planner Anmol Gupta warned filers about key changes to India’s income tax return (ITR) process this year. “If you’ve been claiming inflated HRA for your hometown address while working in a different city, you may be scrutinized,” he wrote.

The government has introduced mandatory disclosures for a range of deductions under the old tax regime—including HRA, 80C (investments), 80D (health insurance), 80E (education loan), and 80EEB (EV loan). The aim: to crack down on false or exaggerated claims.

For HRA specifically, taxpayers must now disclose:

• Place of work
• Actual HRA received
• Actual rent paid
• Basic salary and dearness allowance
• Whether the city is metro or non-metro

These fields will be cross-verified, particularly to catch cases where people claim rent for a location they don’t live in.

It doesn’t stop at HRA. For deductions under sections like 80C and 80D, taxpayers will now need to provide policy or document numbers, the name of the insurer or institution, and other specific identifiers. Loan-related claims—like for education or EVs—will require the loan account number, sanction date, and outstanding balance.

“These disclosures are mandatory,” Gupta noted. “Missing information may prevent you from uploading your ITR.”

The updated ITR utilities come with automated validation rules—returns simply won’t file unless the fields are complete.

While these changes apply only to those under the old tax regime, Gupta’s message is clear: this year, there’s no room for guesswork. Claim smart, or don’t claim at all.