In December, the Central Board of Direct Taxes (CBDT) made it compulsory for anyone paying more than Rs. 1,00,000 rent per annum to provide rent receipts along with their landlord’s PAN number for claiming HRA exemption. But as this is a recent notification and most people only came to know about the same once the companies started asking for the same. So in all probability most of landlords would not be comfortable sharing their PAN numbers. So the next question is what if the you are paying rent of more than Rs 1,00,000 per annum and landlord refuses to give his PAN card?
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.
One can approach the tax department with a copy of the letter or email, asking the landlord’s PAN and his/her reply or no response and this should be proof enough to show the house owner was unwilling to share his PAN card. But be prepared to wait for at least six months for the refund!
So, when your lease runs out next time, and if you plan to look for another place to rent, make sure you tell your landlord you need a copy of his/her PAN card to claim for HRA even before you sign the rent agreement and hand the deposit. It will definitely save you the hassles.
Download the No PAN Card Declaration in DOC format from this link