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PAN Details Of Landlord Is Now Compulsory For HRA Exemption

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According to the notification issued by the Income tax department, now landlord PAN card is must to get tax exemption against HRA allowance.

Salary slip of salaried employees covers a component called as ‘HRA Allowance’. Each employee get this component every month to pay off his house rental. Employees staying at rented houses can  claim tax deduction on this amount under income tax act 1961.

Earlier only rent receipt was required to get the tax exemption but as per the latest notification from Income Tax Department, now one has to submit the PAN details of the landlord in case of total rent exceeds Rs 18,000 p.a.

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PAN Details Compulsory In Case Of Total Rent Is More Than Rs 1,80,000 Per Annum

For Example, Mr X is working in a IT company where his salary package is having a component named as ‘HRA allowance’. Mr X is staying in a rented apartment on rent Rs 20,000 p.m and to get the tax exemption he submits rent receipts as proof to his companies finance department to get tax exemption.

As of now this was enough to get the tax exemption but with the latest change made under regulation, now one has to submit the PAN details of the landlord in case of monthly rent is more than Rs 15,000. Which means from now on Mr X needs to submit original rent receipts as proof of rent as well as PAN card copy of the landlord to get the tax exemption on HRA.

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In the case, if the landlord doesn’t own a PAN card, he must sign the self declaration saying that he don’t have the PAN card and that copy must be submitted to the employer to get the HRA exemption.

3 comments

  1. Hi,
    I have paid Rs 20k pm as rent but only stayed for 8months in my previous flat (Total rent paid = Rs 1.6 lacs). In the current flat, I am paying 20k pm again and would be staying for the remainder 4 months.

    Do i need to submit the PAN copy of both landlords in this case also?

  2. Is PAN mandatory for rent of Rs.15000/-per month OR Rs.15001/- & above per month , please clarify.

  3. hello sir i am a gov. Emply having basic salar 17660 i have apply 4 the hra examption but our ddo said that u should have followng documents for the exemption 1 rent agrement 2 electribty bill 3 water bill 4 property tax receipt 5 owners pan card what should i do sir plz guide me its too important plz help me

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