Sage-Tips

Can I give random PAN for HRA?

Tax experts say that an employee can still claim tax benefits under HRA in his or her tax return. “Once a person is to file his/her income tax return, there is no requirement to furnish the PAN of landlord,” he adds.

Is PAN number mandatory for rent receipt?

When landlords pan mandatory for HRA exemption? In case of rent payment per annum is more than Rs 1 lakh i.e more than Rs. 8333 per month, the employee needs to provide the PAN number to the employer mandatorily.

Can parents pay rent to son?

You can pay rent to your parents if you are staying with your parents. This should be done by transferring the money (rent) to their bank account or pay via a cheque. This way you will be able to claim your HRA deduction properly. Since rent is paid to owners, the property must be owned by your parents.

Can I claim HRA if my Landlord does not have PAN number?

You probably have to forgo the HRA exemption as your company would not take any other document in lieu of landlord’s PAN number or a declaration that he doesn’t have a PAN number. So the next step is you can claim the tax paid back while filing tax return for the year.

What happens if the landlord does not have a pan number?

The tax law also says that in case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address should be filed by the employee. Can you claim HRA (house rent allowance) if the landlord is not providing you his/her PAN?

Why do unknown pan numbers get notices for HRA exemption?

Unknown PAN Numbers would get notices for not declaring Rental Incomes. So when the claims are examined, you would get notices for claiming having paid rent, and thus claimed HRA exemptions. This would depend on whether the Income Tax Department actually checks the HRA exemption documents from companies, which isnt currently being done regularly.

Is rent paid by employees under HRA tax benefits?

House rent paid by employees are exempt from tax to a certain extent under HRA tax benefits. If the annual rent paid by the employee exceeds Rs 1 lakh per annum, it is mandatory for the employee to report PAN of the landlord to the employer.