Received a Notice for Fake HRA Claim? Here’s What You Must Do Now!

If you’ve received a notice from the Income Tax Department questioning your HRA claim, you’re not alone. Thousands of salaried taxpayers who submitted fake rent receipts are now being flagged through data matching tools.

Why You Got This Notice

You claimed HRA exemption, but there’s no rent payment in your bank account.

The landlord’s PAN you submitted hasn’t shown any rent income.

You didn’t deduct TDS under Section 194-IB (mandatory if rent > ₹50,000/month).

System couldn’t trace any recurring cash withdrawals or rent agreements.

What You Can Do Right Now

1. Check for Proof

Review your bank statements for actual rent payments.

If paid in cash, check for monthly ATM withdrawals around rent dates.

Gather documents like rent agreement, utility bills, or a landlord declaration.

2. No Proof? File an Updated Return

Use Form ITR-U to remove the fake HRA claim.

Pay the tax + interest voluntarily to avoid future penalties.

Do this before the department escalates it to full scrutiny.

3. Respond to the Notice

Log in to the Income Tax Portal

View the notice under “e-Proceedings” or “Compliance”

Attach your explanation or updated return acknowledgment.

Need Help?

We’ve handled multiple such cases and can guide you end-to-end.
Write to us at: stoxntaxblog@gmail.com for quick and confidential support.

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