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)
My company deducts the tax every year. This year I have submitted the Landlord declaration form and pan card but forgot to submit rent receipt and the company did not consider the tax and deducted 12K for the same.
Is it mandatory to give the rent receipt.
Please let me know how to save my 12K hard earned money
Facing the same problem. Landlord is not giving the rent receipt or pan card and Employer will not consider the HRA exemption if Pan card and rent receipt not submitted.
Please suggest any way-out other than forging the documents.
This is not a good idea,submitting Rental agreement and Rental receipts are a big head ache for the salaried employees. Government must rethink about paying a fixed amount as tax exception from Rental depends on the places they live in.
IS the surrender leave ( equal to Half month salary, 15 days salary in a financial Year ,optional not mandatory ) calculate in the rent paid in excess of 10 percentage salary calculation. ( pay and dearness allowance calculatuon)
I AM PAYING 16500 RENT, LANDLORD IS NOT WILLING TO PROVIDE HIS PAN ALONG WITH RENT RECEIPT. IF I FORCE HIM HE WILL TELL TO LEAVE THE HOUSE. HE GIVES ONLY 8000 RUPEES RENT RECEIPT WHICH DOES NOT REQUIRE PAN, I END UP PAYING 25,000-30,000 FROM MY POCKET TO GOVERNMENT. GOVERNMENT SHOULD FIND ANOTHER WAY TO COLLECT TAX FROM LANDLORDS. WHY IS GOVERNMENT THE MIS-USING TENANTS?
WE THE SALARIED EMPLOYEES WHO ARE HONESTLY PAYING TAX EVERY YEAR ARE MADE SCAPE GOATS AND FOOLS BY THE GOVERNMENT AND LANDLORDS.
EVEN THE NEWS MEDIA IS KEEPING QUIT AND NOT MAKING ANY NOISE ABOUT THIS ISSUE.
HONEST TAX PAYERS ARE SUFFERING AND BECOME MORE POORER, LANDLORDS DO NOT PAY TAX AND NOBODY IS CATCHING THEM.
THIS IS TOTALLY UNFAIR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I am also facing same problem. LANDLORD IS NOT WILLING TO PROVIDE PAN. I AM PAYING 16500 RENT
how to take care of a situation, where the landlord refuses to provide PAN (He has it), even if I am paying rent around 10K/month.
which type of receipt produce for h r a.
ple tale me
If i show rent 5000per month…then i have to show pan no.of honour or not…tell me plz..
Presently i live in at Bharuch in my wife name home, i paid him home rent on every month, my wife claim this home rent in his Income and same home taken loan and i claim Home loan in my Income Tax declaration.
So it is posible to declare in my Income Tax of Home loan and Home rent in my present 2014-2015
I paid Morethan Rs.1 lakh House Rent to two Different house owners / Landlords. I occupied 2 Different houses for Part of the year. The employer is asking for the PAN no. to give exemption from HRA. Please advise.
Hi…
I was staying with my parents (Age above 65 years) from December 2013 to June 2014 at Dadar, Mumbai.
I want to claim for HRA tax exemption against it. I have already rent receipts prepared in name of my father who has signed on it. I wish to put monthly rent as Rs.15,000/- for the above period. I can furnish PAN No of my father in filing income tax return. My father don’t have any problem in above case as his income includig above rent is well below income tax limits.
However I had not made any Live & licesnse agrrement with him. In this case will it be mandatory to furnish it while filing Income tax return?
If i don’t have it right now, what is the way to get exemption in above case?
Is there any counter arguement if one produces fake declaration of the Landlord that he does not have a PAN and then Tax department catches the Tenant for submitting fake document?
What is the penalty for both Tenant and Landlord if such thing happens?
It’s a real fact that no landlord will provide PAN number. IT department and government should be shame on their own stupid policy.
The government should ask/force Landlords to put their PAN number in rent agreement instead asking tenants to get PAN from Landlords. this policy has no clear visibility.My house owner not taking rent by cheque,not providing pan.teliing your wish you can leave house.it is torture of government to those salaried people who pay tax sincerely.
there are lac of rich people,never give a rupee towards tax.
simple way to torture those salaried people.
My landlord is denying to provide me PAN card copy or the declaration to the effect that he does not have one. So, does that mean, i’ll have to suffer? Do i have any options ? Is only the tenant bound by this rule and not the Landlord.
Why can’t i provide a declaration that Landlord is not providing me either and claim my exemption?
I have paid rent through monthly A/C Payee cheques to my landlord during FY 2013-14 for which Rent Receipt for the whole amount in proforma is expected to be received only after full and final tax is deducted at source by my employer from my last Paybill on 28 February 2014. Can I submit a copy of my Rent greement plus copy of Passbook showing debits of monthly rent with name of Payee (landlord) to claim tax exemption under Section 10 (13A)
My salary income for FY 2013-14 is Rs. 7,05,128/- (including Rs.,577,972/- Basic plus DA, HRA paid Rs.92,052/- etc). I have paid rent through A/C Payee cheques of Rs. 1,11,000/- for the residence occupied by me. Rent receipt for total amount of rent paid in FY 2013-14 is expected to be received from my landlord only after 28 February 2014 by which time my actual tax calculated for FY 14-14 will be deducted at source by my employer from my last Paybill for FY 2013-14 (as March 214 salary is paid in April FY 2014-15). Can I submit a copy of my Rent Agreement plus copy of my Bank Passbook stating debits from my A/C, and name of the Payee (my landlord) towards monthly rent paid by me by Cheque, in order to claim an amount of Rs.53,203/- (1,11,000 less 1/10 of 5,77,972/-)Tax exemption under Section 10(13A of Income Tax Act.
I have an issue-
My landlord is agreeing to give PAN, but his property is in Joint Name and he is telling me to claim in two owner names as it is joint, and asked me to divide the value into two halves, but in any system in corporate cannot consume two pan cards and two owner names. how can this be solved?
What if i am paying rent to 4 landlords because it is a joint ownership and the rent paid exceeds 100000 in total to all landlords, but it does not exceed 100000 not if i consider rent paid to individual landlord.
Do you have to get PAN from all the joint owners
I purchsing one home by loan on Dec-2011, Till date home not hand over to me (under conctruction) and i claiming loan in my 2013-2014 income tax declaration. Presently i live in rent home.
So possible to claim Home loan and Home rent in 2013-2014 income tax declaration. Please suggest
It’s a real fact that no landlord will provide PAN number. IT department and government should be shame on their own stupid policy.
The government should ask/force Landlords to put their PAN number in rent agreement instead asking tenants to get PAN from Landlords. I am damn sure that the policy maker must be Tenth pass only or must have taken something under the table to pass this policy.
I agree to what Markson says. It is near impossible to get the PAN of the landlords or any other document signed; BUT the consequences have to be borne by the tenants.
Why don’t the CBDT or any concerned authority make it mandatory to have the PAN or a signed declaration of the landlord in the rental agreement itself? Salaried employees can/will give a copy of the rental agreement. If it does not have the PAN or declaration of the landlord, you can question the landlord, after-all it is the landlord who made the rental agreement. Is it not a flaw to make the salaried employees bear the consequences of non-cooperation/malfeasance by the landlord?
Ajeeb Samasya hai bhai Salary balon ki. Is desh ka kya hoga, sab kuch bad gaya lekin transport allownce 800 rs.it shoud be 80000, why rent up to 1 lack, its should be 2 lack becuse sarakar ke hisab se growth ho gayee.
koi to rasta hoga jiske through atleans princiapl amt ko kuch to bachaye. ye mhangayee and sarkar dyan mar degi
It is very bad news for all employees who are paying tax correctly.
This is very bad to collect PAN details and submit to gove trough salaried employees. Insted of they can put mandatory to give the permission to build the house
This is classic case of not intentionally mossing the woods for the tree. For income tax salaried people are like sugarcane which has to be put repeatedly twisted and put through the machine to get the last drop as if there are no other means to get revenue.
Everyone in society (even our domestic helps, sabjiwala etc.)can take care of inflation by increasing prices/rates, but this govt and all others are absolutely insensitive to plights of salaried people and keep on squeezing them.
My wife name one home and we living with her. Home EMI paid by me,i provide her homerent to same, my wife also claim income tax for this home rent.
so i possible to claim this home rent in against my HRA.
with regards
Vasant Panchal
I am Shattered with this Govt Policy, Actually i Pay 14K Rent but Owner says he will not provide pan card if i force him he state away ask me to vacate the house where shall i find new house I am dam sure new owners also fall in the same category.
Why not we Promptly paying tax payers should strike on this matter these Kachda politicians spend our tax money Las vegas and foreign tours in the name study tours.
Really at this moment i am feeling helpless any government forum where i can raise such complaint/grievances.
Govnt should make this as leagal. any house owner who is not willing to say the pan card details or receipt can be made as illegal and action can be taken on him.
Will government do this then only house owner will pay exact tax.
1. My landlord doesn’t have PAN & also not ready to provide declaration. Please let me know what to do?
2. What to do if owner doesn’t provide rent receipts also?
3. Can I get HRA exemption by providing Rent Agreement & bank details of online rent transferred?
4. If my HRA is around 5000 p.m. which is less than 8333, but I am paying 10,000 per month. Does it require to provide PAN/Declaration of owner?
5. Can I claim for HRA at later stage while submitting income tax forms?
6. Where & how I can complaint about landlord for not providing PAN/Declaration? Can I complaint to IT dept. for same?
Thanks
Atul
HI.
I am paying 11K rent and my house owner has PAN number but he is not sharing.How do i proceed this .Can Any one know where i can give complaint on him.
My Owner is not providing the PAN Number nor is he signing the declaration so what must I do?
Please clarify, If the actual rent paid by the employee is more than Rs.100000 and the landlord doesn’t have PAN, then will the self declaration form work??
Thanks & Regards,
Debashish Patra
Otherwise we or an big fools in loosing the HRA Exemptions.
Hi All,
This Government cannot catch hold of the Landlords Directly, because non of the land lords will declare actual rent received by them while filing there IT returs.
Hence this government as made this Rule ie., If the assessee pays an annual rent of Rs. 100,000 then assessee has to provide the PAN no of the Landlord.
Government is playing an tricky game will the citizens:
1. By doing this government can collect more tax, because government/IT department knows that none of the land lords will give the PAN No’s. In this case Tax will be coollected by the Employees.
2. If at all, all the Landlords gives the PAN details, then also benifit is for Governement only.
To taken an revenge or what ever the name called. What we (The Assessee)can do is “Ask politely to the landlords for PAN no.s if he is not providing then taken the Rent Receipts Signature (without PAN No.) and file an complaint with IT department that i am paying an rent of Rs.xxxxx and the landlord is not providing the PAN No. please help on this. I an group of people are thinking of doing this. In the Letter also we are pointing that “Because of Your Circular No.XXXXXXXX issued we have facing this problem”
OR
One more thing we can do, Get the Rent Receipt signed and take an Printout of the Declaration and you sign and submit with the Employer (Rent Receipt and Declaration). You challange with your self and do.
All these cannot be done by Individuals, this can be done with the Groups of Assessees.
This rule is insane and just another way of the govt to arm twist middle class to fill in their coffers so that govt could siphon off all the money. In India landlords never pay taxes, instead of catching hold of them, the tactics of the govt is to arm twist a law abiding middle class person, who is getting salary with TDS applied. Adding to this apathy, this rule ruins the middle class savings and forces him to let go his HRA. A complete non sence
I stay in a rented house that is owned by an unregistered Family trust that does not have a PAN card. What can be done in this case?
Regards,
Nitin
This income tax department or finance ministry does not have guts to touch the VIPS who are evading taxes by providing some reasons. This people have lots of black money which IT dept does not want to recover, the reason everybody knows and finally the burden will be on the employees and common man.
The dept should find any other alternate ways to get money to the nation in any other way as mentioned above
Regret my somewhat detailed feedback comment drafted painstakingly and posted a couple of days ago , for the common benefit of the readers,has remained undisclosed; reason unknown!
1. @ J Adam
The point raised is seen to be quite valid. The subject circular is same as that issued, almost as a ritual, annually; and merely to explain for the benefit of taxpayers the salient features of that year’s Finance Act. As such, the validity of the requirement (s) newly introduced is highly disputable; for, if at all, that could have been done only through a proper legislation and amendment of the related extant provisions of the IT Act.
2.. By the way, it needs to be incidentally pointed out that, section 194-I providing for TDS on ‘rent’ paid, has in terms application only if the payer is not an individual or a HUF. On thev other hand, the subject HRA is of relevance to employee being an individual. So much so, for meeting the point of objection, in any case, would, if intended to be enforced, call for substantial changes of the related / connected provisions of the law.
Further, the said section 194-I , if read mindfully, cannot but be noted to suffer from the same fallacy / glaring lacuna as pointed out in a couple of articles published on this very website critically analysing the yet another provision of a recent origin namely, Sec 194-IA. The lacuna is that house property in the form of unit of a building known as – Flat or Apartment has been omitted to be specifically covered by using a proper language as warranted.
On the premise that the point made is not without substance but is quite valid, what is deplorable is that for practical purposes both taxpayers and advising professionals appear to have, by and large, over sighted, and continue to do so, without realising the existence of such a lacuna of a vital nature, albeit obtaining for long on the statute.
Open to contrary view, if anyone else happens to hold / entertain one, provided thatv is supportable for a different but sound reasoning.
I agree with Markson’s post,it is type of harrashment from the Govt.to the landlords & tenants, all the land lords does not trust on their tenants & never want to give any proof to the tenants to avoid any type of litigation in future.
Hello,
There will be very few landlords who would willingly give this declaration. For most would prefer not to report this income. This kind of burden on the tax payer is not warranted.
This only to make the honest tax payers more tax. the government should take steps to recover black money and avoid cash transactions. The conveyance allowance of Rs 900 fixed decades back government does not want to change that as we will pay less tax, not even considered in Proposed direct tax code but in case of HRA it is issuing circular and increasing the amount. I am not sure if this circular has any legal validity as it has to be a notification.
Hi,
Is it legally valid to impose a restriction by way of a Circular?
Thanks & Regards,
Jamsheed Adam
Hi,
In most of the cases, landlords are unwilling to give PAN card copy, declaration saying he has no PAN if has none. There is a landlord, he takes only in CASH and not even through any other means of payments, because does not want to leave any kind of proofs.
Basically point here is, when landlord is unwilling to give any kind of documents, what tax payer should do to get HRA? (Landlords directly say, they wont give any docs or signatures. They say to tenant, either they have to agree to their terms OR can vacate the house. Given the condition of homeless citizens, tenants have no other means escape from exploitation by Landlords and Govt).
Even if you try to ask some form of document with new landlord also issue is same.
This is totally inability of Govt to punish the tax evaders like Landlords. And making tenants pay for its inefficiency.
Regards,
Markson
Hi,
In most of the cases, landlords are unwilling to give PAN card copy, declaration saying he has no PAN if has none. There is a landlord, he takes only in CASH and not even through any other means of payments, because does not want to leave any kind of proofs.
Basically point here is, when landlord is unwilling to give any kind of documents, what tax payer should do to get HRA? (Landlords directly say, they wont give any docs or signatures. They say to tenant, either they have to agree to their terms OR can vacate the house. Given the condition of homeless citizens, tenants have no other means escape from exploitation by Landlords and Govt).
Even if you try to ask some form of document with new landlord also issue is same.
Regards,
Markson
Hello Tax Guru,
I was unable to submit to my employer my House Rent Receipt. How can I do the E-filling, so that I can get a the deduction from the Tax paid?
Hii..I had submitted a Rent Declaration in June 2011 to the HR. However, when the HR emailed asking for actual Rent Receipts in March 2012, I did not read the email and hence did not submit my Rent Receipts. As such, I was not given exemption for HRA and hence IT was deducted for the HRA amount.
I have the Rent Receipts that I paid for the last 8 months. When I get the Form 16 in May, can I file for IT return along with the Rent Receipts? Another question- Do I need to submit individual Rent Receipts for each month in 2011-12 or a cumulative Rent Receipt would work? When can I file IT return? I want to file at the earliest.
Please reply to my queries.
Well explained claiming HRA, along with the latest Circular.Keep us updated,
CA. Subhash Chandra Podder.
29/01/2012
kolkata.
Dear Sir,
Please send HRA Calculation in Excel file.
Thanks & Regards,
Sharad Marathe