Missed the Proof Submission Deadline? How to Claim HRA and Deductions in Your Return (2026-27)

  • CA Meet Dhrangadhariya
  • June 19, 2026

Last updated: 17 September 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP

Quick summary

  • Your employer asks for evidence of HRA, LTA, home loan interest and Chapter VIII deductions in Form 124 (Rule 205) so that it deducts the right TDS; there is no legal cut-off date, only the employer’s payroll cut-off.
  • If you miss it, TDS is deducted without those claims, but you can still claim HRA exemption and section 123 deductions in your income-tax return and get the excess back as a refund.
  • Both HRA and section 123 deductions are available only in the old regime; the new regime allows neither.
  • Do not send the proofs with the return; keep them ready in case of a notice.

Every year, employers ask for rent receipts, investment proofs and loan certificates in the last months of the tax year. If you miss the date, your payslip shows more TDS than you expected. That money is not lost. Most claims can be made again, and the excess tax recovered, when you file your return.

Why the employer asks for proofs

Under section 392 of the Income-tax Act, 2025 the employer must deduct tax on salary at the average rate on your estimated income. To estimate your income, it gets evidence of your claims under section 392(5)(b), in Form 124 (Rule 205). The Rule lists what is needed:

Claim Evidence the employer asks for
House rent allowance Landlord’s name, address and PAN where yearly rent is above ₹1,00,000, and any relationship with the landlord
Leave travel concession or assistance Evidence of the expenditure
Interest on a house loan Lender’s name, address and PAN
Chapter VIII deductions Evidence of investment or expenditure

The date set by the employer is a payroll cut-off, not a date in the law. The employer may also adjust later deductions to correct any excess or deficiency in the year (section 392(5)(c)).

What happens if you miss it

The employer deducts tax as if you had no claims. Your TDS certificate (Form 130, due by 15 June after the year, Rule 215) shows that tax. You have paid more than you owe, but the excess is yours to recover, as a refund, when the return is processed.

What you can still claim in the return

Only in the old regime. Section 202(2) bars the HRA exemption (Schedule III, serial 11) and Chapter VIII deductions (other than a few such as the employer’s NPS contribution) in the new regime. If your claims are large, compare both regimes before you choose one when you file.

1. HRA exemption

You need the rent paid and, if yearly rent is above ₹1,00,000, the landlord’s PAN. The exempt amount is the least of the HRA received, rent paid less 10% of salary, and 50% of salary in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru (40% elsewhere), with “salary” as defined in Rule 279. See our post on HRA. If you pay rent but do not get HRA, a separate Chapter VIII deduction for rent may apply (see our post on section 80GG).

2. Section 123 deductions (formerly 80C), up to ₹1,50,000

Schedule XV lists what qualifies. Several need no new investment, so you can claim them from expenses you already incurred:

  • your provident fund contribution (recognised provident fund) and contribution to an approved superannuation fund;
  • tuition fees for full-time education of any two children at an Indian institution, but not development fees or donations;
  • payments for buying or constructing a residential house, such as loan principal, subject to the conditions in paragraph 3 of Schedule XV;
  • life insurance premium, five-year term deposits with a scheduled bank or the post office, the Senior Citizen Savings Scheme and other listed items.

Investments made up to 31 March of the tax year count, even if you made them after your employer’s cut-off.

3. Interest on a housing loan

Where the property qualifies, the interest is claimed in the return under Income from house property. Keep the lender’s interest certificate.

What to do about leave travel concession

The exemption depends on actual travel and the block rules. Employers collect the evidence through Form 124 and apply it in payroll. Whether a claim can be made later in the return depends on the return form and the proof you hold, so if you missed the employer date, ask a professional before you rely on claiming it in the return.

Practical steps

  1. Collect rent receipts, the lender’s certificate, premium and fee receipts and PF statements.
  2. Read your Form 130 and the AIS and compare the salary and TDS with your own records.
  3. Choose the regime that gives the lower tax with your real claims.
  4. File the return and enter the claims in the relevant schedules. The refund is paid after processing.
  5. Do not upload the proofs. Keep them safe in case a notice asks for them.

Next year

Give your employer the Form 124 particulars early in the year and update them as soon as you pay fees or invest. The tax deducted each month then matches your real liability, and you do not have to wait for a refund.

Frequently asked questions

Is there a legal last date for submitting investment proofs to the employer?

No. The employer asks for evidence under section 392(5)(b) in Form 124 (Rule 205) so that it can estimate your income and deduct the right TDS. The date is set by your employer’s payroll, usually in the last quarter of the year.

What happens if I miss it?

The employer deducts TDS on your salary without those claims, so more tax is deducted than your actual liability. Your TDS certificate (Form 130) shows that higher tax.

Can I still get the benefit?

Yes, for most items. Claim the HRA exemption and section 123 deductions when you file the return. The excess TDS comes back as a refund.

Do the claims work in the new tax regime?

No. The new regime does not allow the HRA exemption or Chapter VIII deductions such as section 123 (section 202(2)). They are available only if you choose the old regime.

Do I attach proofs to the return?

No, but keep them. You may be asked for them if the department sends a notice.

When must the TDS certificate be issued?

Form 130 for salary is to be furnished by 15 June after the end of the tax year (Rule 215).

Official sources

Disclaimer

This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.

Form 124, Form 130, HRA, Old regime, Proof submission, Refund, Section 123, TDS on Salary

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