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. 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 to the employer. 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.
Rent Receipt without PAN- Sample declaration format
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 1st April’2018 to 31st March’2019 to ___________( Name of lessor) at a monthly rent of Rs. _______/- ( __________________ only). Further I do hereby declare that my total income during the financial year 2018-2019 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) |
EXTRACT FROM THE CIRCULAR NO. 8/2013, Dated: Dated: October 10, 2013 RELATED TO HRA
Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule
2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:
(a) The actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or
(b) The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
(i) Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or
(ii) Where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period,
For this purpose, “Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.
Further 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 to the employer. 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.
(Article was first published on 03.12.2013 and republished on 07.08.2015)
Also Read:
1.Whats Better House Rent Allowance or Deduction u/s 80GG
2.House Rent Allowance (HRA) Taxability & calculation
3.House Rent Allowance Vs Rent Free Accomodations
(Republished With Amendments)
Hi,
I want to get clarity that submission of declaration from the landlord for claiming house rent paid is still in force as per the circular CIRCULAR NO. 8/2013, Dated: Dated: October 10, 2013.
Can I get the HRA deduction if I am paying rent to a NRI and land lord dose n’t have PAN No.
Is there any changes happen in the financial year for NO PAN declaration for HRA.
Can anyone send me the forms that needs to be submitted to HR regarding HRA?
1. Form to be submitted along with PAN copy of landlord other than rent receipt
2. In case landlord doesn’t have PAN copy
Thank you
If you plan to claim tax exemption under house rent allowance (HRA) for the current financial year, remember that you will have to furnish the Permanent Account Number (PAN) of your landlord if your annual rent exceeds Rs.1 lakh, or Rs.8,333 per month. Earlier you had to furnish PAN of your landlord only if annual rent exceeded Rs.1.80 lakh, or Rs.15,000 per month
if Rent paid to 2 land lords both below 1 lac then is there need of Pan no Of land lords
Hey,
Is there any change in the policies regarding submission of declaration if owner don’t have PAN card? Is it removed from this year and only PAN card is accepted and not declaration? Please provide the details. Thanks.
my parents living in city-c and i am living in city -d ,can i claim two hra exemption
i am living in city-a my parents living in city-b can i claim HRA exemption for both the places
what emplyer will do with PAN of landlord?
I have the rental agreement dated 10 Dec 2014. Can I submit this rental agreement as proof of rent to my employer.
If no, then can i make a new agreement dated say 20/01/2016 and get the signature of owner and submit to the employer for financial year 2015-2016 to claim HRA examption. Please advise at the earliest.
my son is working in mnc in bangluru and residing in flat room shared by one more friend and paying rs 7000/- each for the same. his employer paying rs62000/= p a as house rent allowance. kindly advice for getting max exemption of HRA. is he have to get rent receipt from the house owner.
Dear sir
I was in tuticorin from Apr 2015 to Dec 2015 on my previous company. now i am working on another company in another city. on both case i had diferent lanlord . on my first landlord i paid 90,000 thousand & on my second is 30,000. Shall i need to submit PAN CArd for both landlord?
where to report pan of landlord by employer at the time of HRA Calculation
owner does not give PAN nor ready to give rent agreement copy/receipt. as i transferred money through net banking; i have full record in my account statement. how do i claim HRA in this condition.
One logic, I am not convinced about the Govt. strategy while dealing with the Salaried tax payers.
Govt is least bothered about the liabilities/basic payouts of a salaried person while fixing the computation of tax. It’s okay.
But, why not allowing the person to enjoy his/her allowances by putting some hindrances here and there.
Here, the question is about the computation of House Rent exemption amount.
Suppose, somebody is getting Rs.1,44,000 HRA per annum, that means he is capable of paying rent for Rs.12000/- pm. But, if his financial condition does not allow him/her to afford that, and he has managed to stay in a smaller room paying rent of Rs.6000/- pm., then straight away this benefit should on his/her side. But, as per the tax computation he/she will entitled for the exemption only on Rs.6000/- pm.
Agree, the exemption should be provided against the actual payouts where it is the question of LIC/PPF etc. But should not be in case of HRA atleast… It’s my opinion…
Any one who has rent receipt and whose landlord is not providing PAN can try this
Things you require
1. Landlord’s father’s name
2. Landlord’s DOB
And you can get these very easily
Then go to google.com and type know your pan
Enter these details and you will get PAN number of landlord which can be quoted in investment declaration form our rent receipt.
Most companies don’t require physical copy of PAN.
Rent Receipt without PAN
Landloard has provided the signed self declaration for not having PAN and monthly rent paid is 20,000/-.
The Actual Rent paid is 30,000/- Please let me know what should i do in this case.
Thanks and regards,
Pradeep