PAN of Landlord is a must if your total annual rent paid exceeds Rs. one Lakhs during the financial year. If rent is equal or less than one lakh rupees then you need not provide PAN details of your landlord to your employer.
As per recent notification issued by CBDT, to claim HRA exemption employees are required to compulsorily provide PAN details of their landlord if they are paying house rent of more than Rs. 100000 per year (i.e. Rs. 8, 333.34 per month from April to March).
Based on this notification, if you are not providing landlord pan details then HRA exemption can not be claimed in cases where rent paid for the year is more than Rs.100000. To claim HRA, your Landlord’s PAN and rent receipt collected from the landlord are to be submitted to employer.
In absence of a PAN card, landlord has to provide a self declaration stating his name and complete address. A valid identification proof of your landlord needs to be attached along with his/her declaration.
Declaration from landlord should specify that he does not have a PAN.
If house rent paid to landlord is equal to or less than Rs. 100000 then you are not required to collect PAN details of landlord. Only the rent receipts will be sufficient to claim HRA exemption.
Your employer may ask you for the rent agreement in addition to rent receipt and pan details of landlord. If your employer asked for rent agreement then it can be provided with PAN details of landlord in it.
If landlord is unwilling to provide PAN card self declaration as required for claiming HRA exemption then you have to forgo your HRA deduction.
With the rent receipt of landlord and rent agreement, you need to claim your income tax refund while filling your Income Tax return.
In such cases, we suggest you to pay your rent by cheque or account transfer to your landlord. By paying your rent through a bank account it will be easier for you to prove that you have actually paid rent.
You can also drop emails to your landlord’s email ID or letters for asking his PAN. This will help you if your landlord does not provide you PAN details and you are required to claim refund for the excess tax deducted on your HRA.
You can collect landlord’s PAN details at the time of making agreement with your landlord or before entering the house. By collecting PAN details at the time of making agreement you will not be facing these kinds of problems at the year end.
Earlier the limit of collecting landlord’s PAN details was Rs. 200000 per year. Recently on 10th October 2013 a new circular has been issued by CBDT where the limit has been reduced to Rs. 100000 per year.
Declaration for Not Having PAN card – You can download this Self Declaration format to be provided by landlord for not having PAN card. Till date, no specific format has been prescribed for this declaration. You can change this format as per your requirements. Good Luck!
My Landlord is also refusing to give PAN card details or the declaration. My net payment to the landlord is 1.14 L total. The payments have been made through cash deposit and I don’t retain the receipts. However I do have the agreement and my name is mentioned along with the other tenants of the house. Can I still claim the same
Thanks a lot for all the effort you take to attend so many individual queries. My query is regarding the probability of getting audited by IT Deptt. On what basis/factors does IT Deptt pick a case/file to audit? Is claiming a refund increases the chance in any of the ways? Request you to please enlighten me.
No body can comment on the probability of getting audited by IT department. Claiming refund will never increase the chances of getting audited. It depends..if your case is selected by IT department then you have to prove that your claim is right. If they ask you for supporting documents then you have to provide those to IT department.
We are 3 people in a apartment with 20k per month rent with equal share. My Landlord is refusing to give me PAN card. Do I need to submit the PAN details as my share is less than yearly 1lac limit , but the overall rent is greater than the Income Tax Limit.
How about the rent agreement. Have you mentioned that you all have equal share. How much rent are you going to show in your tax declaration to employee? PAN card of your house owner will be required only when total rent paid by you exceeds one lakh rupees per year.
I am paying 20k per month rent. Can you please also confirm if the photocopy of Landlord’s PAN is also required along with Rent Receipt for HRA claim? Or details of the PAN can would be okay?
Its not per month.. its per year. If your rent per year exceeds 100000 rupees then PAN card details are required to be submitted to employer. If PAN card details are not in rent receipt and/or rent agreement then to be on safer side, its better if you take PAN card copy (attested by your landlord) and send it to your employer along with the rent receipt.
Hi,
I joined company in the month of June 2013 and I have only rent receipts till now. I pay 8000/month. Will only rent receipt work??? Or I need to submit any thing else.
Thanks In advance.
Harsh
In your case, only rent receipt will work. But it also depends on your employer’s policy. Some employers are asking photo copy of rent agreement in addition to rent receipt. Talk to your your employer on this.
i have rent aggrement on non judicail stamp paper, i m paying rent by cash, can i avail HRA?? my landlord not ready to sing any declartion nor sharing pancard details… pl revert ASAP… thakn you..
Do you have rent receipt. without rent receipt you can not claim your HRA..
My landlord is not sharing his PAN details and not even giving the declaration. He has asked me to vacate the house if I need the PAN details. I have been paying rent through cheques and I have the rental agreement. I am not sure what needs to be done now. Can I file a case against the landlord ?
Your employer will disallow HRA exemption, but you can claim it at the year end while filling your income tax return. You can show your bank statement and rental agreement as a proof of paying your rent.
Without your landlord’s pan details, your employer will not allow you the exemption. You have not specified the rent amount here. we assume that you are paying more than Rs. 100000 per year as rent to your landlord.
Thanks, will mention the same while filing IT returns. Yes I am paying more than 100000 per year as rent (13,500 per month)
If a person stayed six months in one house and paid rent less than one lakh to first owner, and six months in another house and paid rent less than one lakh to second owner, whether he has to get PAN details from both the owners ? Thanks in advance.
How Much Amount for Rent can be paid without Rent Agreement.
HRA exemption of Rs. 3000 can be claimed without submitting your rent agreement to employer. But if the income tax department ask you for a proof then you need to submit it to them.
What if Owner lives outside india and does not have PAN.?
According to Section 195, all Indian income of an NRI is subject to TDS. This rule applies to rent too.
But if you have rented a house from an NRI landlord, the onus is on you to deduct tax at source and pay it to the government. The TDS is a flat 30.9%
Rajeev,
Thank you very much.
After several discussions, my landlord agreed to provide his daughter’s PAN but I’m not sure how will this work. Can someone explain the process an employer follows while filing the TDS to get HRA exemption using the landlord’s PAN and generate a form-16 for an employee? Do they register the Landlord’s PAN with the Income Tax authorities or its portal while filing the TDS for an employee? Or is it just the employer’s verification and the IT dept will verify on a random basis? Please clarify the process followed by the employer and the IT department in this case. Thanks in advance.
Earlier employers use to collect only the rent receipt and rent agreement for HRA exemption. Now the act is specifically asking to collect PAN card of landlord along with these documents if rent paid per year is in excess of Rs.1,00,000.
I am also facing similar issue as Kumar, as my landlord is willing to share his wife’s PAN Card and not his, though the house is in his name. So the same question again :
Can someone explain the process an employer follows while filing the TDS to get HRA exemption using the landlord’s PAN and generate a form-16 for an employee? Do they register the Landlord’s PAN with the Income Tax authorities or its portal while filing the TDS for an employee? Or is it just the employer’s verification and the IT dept will verify on a random basis? Please clarify the process followed by the employer and the IT department in this case. Thanks in advance. Please Respond.
HRA exemption will be given by your employer. After giving HRA exemption, yearly tax liability will be calculated. However, IT department wants employer to collect PAN number of house owners in cases where rent paid to such house owner for the whole financial year exceeds 0ne lakh rupees.
If landlord is unwilling to provide PAN card details then you have to forgo your HRA exemption. With the rent receipt and rent agreement, you can claim your income tax refund for the excess tax deducted while filling your Income Tax return.
Thanks a lot for all the valuable information you are sharing. But few questions are yet unanswered in the original query. Has IT deptt defined any process wherein the employer has to furnish or register Landlord’s Pan No with IT Deptt so that IT Dept can verify, if the Landlord has declared the income from Rent as taxable income? Or it is used just as an information for may be bookkeeping? Please respond.
Voluntarily employers are not required to submit these information. But, if asked for then they have to submit it to IT department.
If I have been on rent at more than one location and at NO location the total rental amount paid to the owner has never crossed Rs.1 lacs. In this case, do I have to produce the PAN number for all owners? Thanks in advance.
Are you staying in both the places? how its possible? anyhow this provision is applicable for the rent paid per year to your owner or landlord
As per the new Government regulation, we are supposed to provide PAN details of our landlord, in case the annual rent paid is more than INR 1,00,000. So in case someone is paying the rent for 12 months, monthly rent should be less than 1,00,000/12=8333 However, if someone started to work in June 2013 after completing MBA. He will be paying rent for just 9 months only. In that case, a monthly rent 1,00,000/9=11,111 should not require any PAN Card. Please let me know if I am correct in my assumption??
The limit is per year.. not per month. If for the year (i.e. 1st april to 31st march) you are paying a rent of Rs. 1, 00,000 then this provision will be applicable and you are required to get PAN of your landlord. In this article monthly rent has been derived by dividing the limit of Rs. 1, 00,000 with 12. But the provision has noting to do with your per month rent.
In your case, if your rent paid or payable to your lanlord is Rs.1, 00,000 per year or more than that, then you need to get your landlord’s PAN or else not required.
If landlord refuses sharing his PAN leave his house this year. Landlord should follow the Gov. rules. If they are not paying tax, they are not authorized to use Gov. facility.
This is common man harassment. Since government is unable to target landlords they are directly targeting salaried class.Most of the landlords doesn’t share their PAN details and some of them ask for rent only in cash.My landlord is not sharing his PAN card and has asked me to leave the house if I need PAN details. Just because of stupid order I might get into trouble of changing house.
What if some landlord does not provide any receipt but rent is paid through online transaction and Rent agreement is also available? Whether tenant can claim return on the basis of rent agreement and bank statement showing transaction for rent payment?
Yes, you can do that. transactions in your bank statement will be sufficient to proof that you have paid rent. you can submit rent agreement copy and bank statement to your employer for HRA exemption.
However, if your rent paid is Rs.100000 or more than that per year then you need to collect your landlord’s pan card for claiming HRA with your employer.