What if my rent is more than 1 lakh?
Documents like rent receipts and rental agreements will be required to be submitted to the employer for claiming deduction for house rent allowance. If the payment of rent is more than Rs 1 lakh per annum, then PAN of the house owner will be required to be submitted.
Is rent agreement is mandatory for HRA exemption?
Is rent receipt mandatory for claiming HRA? Yes, the rent receipt is a mandatory document to claim HRA. If an employee receives HRA in excess of Rs. 3000/month, it is necessary to present rent receipts to the employer for claiming HRA.
When rent receipt is required for HRA exemption?
You must ask for receipt for the rent paid every month irrespective of the channel used for making payments. Pinky Khanna, Director, People Advisory Services, EY India says, “It is mandatory to furnish rent receipts to the employer for claiming HRA exemption for the monthly rent paid more than Rs. 3000 per month. “
Why Pan No of landlord is required?
Landlords Not Paying Tax on Rental Income: As a way to ensure that individuals declare this income, the government has made it mandatory for renters to include the PAN details of the landlord in exemption claim form, so they can check if the landlord is declaring the rent as income when filing tax returns.
How Annual Value is calculated?
Computation of ‘Annual Value’ of a House Property [Section 23(1)] As per section 23(1)(a) the Annual Value of any property shall be the sum for which the property might reasonably be expected to be let from year to year. It may neither be the actual rent derived nor the municipal valuation of the property.
Do I need to submit both landlord’s PAN cards for HRA exemption?
If my total rent for the year is greater than 1 lakh, but the total rent paid to the individual landlord is not more than 1 Lakh, do I need to submit both landlord’s PAN cards to avail HRA exemption? Yes, you do need to submit the PANs for both the landlords.
How to claim tax exemption on HRA on rent paid?
Quoting the landlord’s Permanent Account Number (PAN) is mandatory if the rent paid is more than Rs 1 lakh annually, i.e., Rs 8,333 a month, to avail the full benefit of HRA exemption. However, it might not be that easy for everyone to claim tax exemption on HRA.
Is PAN number required to claim HRA in ca?
CA. ATUL MISHRA Landlord’s PAN not needed to claim HRA if annual rent is below Rs 1 lakh and f rent paid exceeds Rs.1 lakh per annum, it is mandatory for the employee to report PAN of the landlord to the employer.
Do I need my Landlord’s PAN card in Pune and Delhi?
Let us say you lived in Delhi for 6 months of a financial year and paid Rs 10,000 as monthly rent and the other 6 months in Pune at Rs 5,000, the total rent paid in the fiscal is Rs 90,000 (60,000 + 30,000) which is less than a lakh, you do not need landlord’s PAN.