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Don’t have landlord’s PAN? Here is how you can still claim HRA

New Delhi: The taxpayers who missed the previous deadline of July 31 for filing ITR, can relax for a while. Government has extended the deadline for filing ITR by August 5.

While filing ITR, you also need to claim HRA in form 16. But amidst all this, the question arises- Can an employee claim HRA if the landlord is not providing his/her PAN details?

HRA is the House Rent Allowance paid by employers to the employees as a part of their salaries. It allows the the taxpayer take benefit for the amount they pay towards accommodation every year.

If the amount paid by employee for annual rent exceeds Rs 1 lakh per annum, it becomes obligatory for the person to delineate the landlord’s PAN to the employer. The tax law also comprehends, if in case the landlord does not have a PAN, a declaration along with the name and address of the landlord should be filed by the employee.

Employee can still claim for tax benefits under HRA in his/her ITR, according to tax experts. Employees need to provide PAN of landlord only to his/her employer. Once the person is finally set to file an ITR, there is no need to provide PAN of landlord.

In case, employer denies for HRA exemption to employee due to unavailability of PAN or declaration by the landlord about not possessing PAN, he/she can still go for filing ITR.

Well, such situation may include critical examination from tax authorities who can survey the situation to verify the authenticity of the claim filed by the employee. Such HRA claims may attract close scrutiny including that of examination of past consistent records. Additionally, chances are high that the claim may exist in ITR but not in Form 16.

Thus, to validate the claim, employee is required to have a proper record of the rent agreement/lease deed, rent receipts, intimation to the society for the occupancy and other important documents. Moreover, it is also advisable to make the payments through banks (as mark or proof) rather than using cash transactions as they may not be considered valid.


Published On : 02-Aug-2017

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