If you’re a salaried employee living in rented accommodation, you’re likely entitled to House Rent Allowance (HRA) — a valuable tax exemption under the Income Tax Act. But many taxpayers are often confused about the need to provide their landlord’s PAN number while claiming HRA. Here’s a detailed breakdown of when it’s required and how to handle situations where it’s not available.
What Is HRA and Who Can Claim It?
HRA is a component of your salary that helps cover rental expenses. Under the old tax regime, this allowance is eligible for tax exemption, offering significant relief to those who live on rent. However, HRA tax benefits are not available under the new tax regime, so the following conditions apply only if you opt for the old system.
Is the Landlord’s PAN Mandatory?
Yes, but only if the annual rent exceeds ₹1 lakh.
Here’s how it works:
-
If monthly rent is ₹8,333 or less (i.e., ₹1 lakh annually):
✅ No PAN is required from the landlord. -
If monthly rent is more than ₹8,333 but less than ₹50,000:
✅ Landlord’s PAN is mandatory. You must provide it to your employer while submitting investment proofs. -
If monthly rent exceeds ₹50,000:
✅ You may also fall under the TDS (Tax Deducted at Source) provisions under Section 194-IB. In this case, a 5% TDS must be deducted from the rent, and PAN becomes even more critical.
What If the Landlord Refuses to Provide PAN?
If your landlord does not provide a PAN, here’s what you can do:
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Get a signed declaration from the landlord stating that they do not possess a PAN.
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The declaration must include:
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Landlord’s full name and address
-
Rent amount and duration
-
-
Submit rent receipts or proof of payment, such as:
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Bank transfer records
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Signed rent receipts
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Lease agreement, if available
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These documents help establish your claim and show a genuine rental transaction for income tax purposes.
Key Takeaways for HRA Compliance
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PAN of the landlord is not needed if rent is ₹8,333/month or less.
-
PAN is mandatory if rent exceeds ₹1 lakh per year.
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Under Section 194-IB, if rent crosses ₹50,000/month, TDS is applicable, and PAN is required.
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Always maintain rent receipts and bank proofs as supporting documents.
-
HRA exemption is only available under the old tax regime.
Author Profile
- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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