HRA Deduction- What if landlord doesn’t give PAN Details

Applicability:


Central Board of Direct Taxes (CBDT) has vide CIRCULAR NO. 8/2013, Dated: Dated: October 10, 2013 said if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord and other details of their landlord on a plain A-4 size paper before submitting it to their employer.

Facts:


If you are paying rent and getting HRA allowance every month, you are eligible for tax deductions according to the prescribed limit of HRA exemption. If you want to avail of the benefits, you must submit the rent receipts to your employer every year at the time of the collection of tax proof.

If Landlord doesn’t provide PAN Details:


  • In case the landlord does not have a PAN, a declaration to this effect from the landlord along with  the name and address of the landlord should be filed by the employee.
  • If your house owner does not have a PAN, you need not worry, as long as he/she is ready to sign a “self declaration” stating he does not have a PAN. You can submit a copy of this declaration to your employer and avail of the HRA deduction.
  • In case, if he only provide PAN No. and doesn’t provide the document then get you can get details from Income Tax  department by providing landlord’s name & DOB.
  • In case, you don’t have above details then  you don’t have to worry because as per some number of tax department officials PTI spoke to said the circular does not state that such a document has to be a ‘sworn affidavit’ or a ‘notarised document’. Hence, an individual should obtain the information from his or her landlord on a simple plain A-4 size paper.
  • In any other case, you can simply contact the income tax helpline for the clarification and their reply should be forwarded to the employer.

A Format of Deceleration May be as follows :-

Date

To

Name & Address

DECLARATION

I ____________(Full name and address of the declarant) aged ____ do hereby declare that I have leased the Flat No._______________________________ From  20XX to 20XX to ___________( Name of lessor) at a monthly rent of  Rs. _______/- ( __________________ only). Further I do hereby declare that my total income during the financial year 20XX to 20XX did not exceed the statutory  limit prescribed under Income tax Act,1962 and have not assessed to tax and does not have a PAN card .

Verification

I,_________________ do hereby declare that what is stated above is true to the best of my knowledge and belief.

Verified today, the _____________ day of _________________

Date : ________________Place : ________________(Name of The Declarant)

 Thanking You

 Happy reading!!

Published by

Shushant ( ICAI Final )

Shushant is a Chartered Accountant student at Institute of Chartered Accountants of India. He is also a Student of Company Secretary at Institute Of Company Secretaries of India. He is a administrator of this site . In his spare time he hang out with his friends and discuss about the current issues in market. You can find his latest blog posts at www.enrollmyexperience.com and at his facebook profile.

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