PAN Card - Permanent Account Number
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
Everyone hates paying taxes and always are on lookout for Options to Save Tax. However…
Are you worried and confused about Lien amount in SBI? Well you are not alone.…
Get details of latest Sovereign Gold Bond Price, Issue details, taxation and how to invest.…
Download the Excel based Income Tax Calculator India for FY 2020-21 (AY 2021-22). This compares…
Piramal Capital & Housing Finance, has come out with Piramal Capital & Housing Finance Ltd…
IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…
View Comments
Hi Amit,
can you please help me with the below query?
If an employee paid the rent till Apr-Sept20 INR-12000pm with landlord PAN no, but when he/she moved to the new property after the agreement expires in Sept-2020, for period Oct20 to March 2021 he/she paid rent 8300pm, but the landlord refuses to give PAn no because of rent is lesser than 1lakh.
what to do in such cases because as per IT dept. if employee pay rent more than 1lakh per year he/she need to submit PAN no of both landlord.
Regards
Dinesh Shelar
My landlord isn't furnishing his PAN details (even though we transfer rent via net banking).
1) Is there anyway we can look out for Pan details via name / other personal details ?
2) Is it okay if we submit a declaration form for NO PAN card on his behalf ? What could be the ramifications if I do this ?
Hi Amit,
If First applicant is Husband and second applicant is his wife then can we show Owner's wife name and her PAN card in HRA receipt.
yes you can as they are joint holders in property and rent can be paid to anyone of them.
HI Amit,
If husband (owner) is first applicant and second applicant is his wife, then can we show Owner's wife name and her PAN card in rent receipt.
Hi Amit,
I too have a similar issue with the landlord denying to provide his PAN Card details. He takes the rent in cash and gives no receipts as well. I have a rental agreement signed by him which clearly says that the house is rented for an amount of 16K. Is there any way I can still avail the HRA exception? Kindly help.
Thanks!
Until you have proof for rent payment you might not be able to take any benefit on rent paid!
Even Income Tax dept is not bothered to listen our words nor support us. We professionals are still in dark and I have no hopes government will take actions on those who won't provide PAN.
Income tax officers not bothered to take action against such people, Poor guys they don't have man power. if they hire man power then they have to spend money....
We are supporting to those who are cheating government and Income tax people professions...are in deep sleep.
I use to pay 15,500 as monthly rent, the owner made an agreement of 14,000 as the rent on her wife's name and refused to share PAN. I have the agreement and bank transactions showing the actual rent paid, shall I go ahead and deduct the HRA exemption from the main salary while filing ITR.
Yes if you have the proof of rent payment you can go ahead and deduct the HRA exemption from you salary and file returns accordingly. Also next time you pay rent online, just mention "rent for month of xxx" in online payments comments.
I am paying 12000 per month. As I have requested my landlord to share the PAN card details, he refused.
I have not tried to collect the information of the landlord by other means like collecting the info of the PAN card from the Internet without their consent.I am having rent agreement .
Shall I go behind them or do we need to just suck it up for such matters? Please advise. As we have portal where pan card is mandatory to enter to submit.
If you can get PAN number nothing like it. But without PAN too you can claim HRA while filing tax returns. Do this only if you have some proof of rental payment or if you pay through cheque/digitally and not by cash!
Hi Amit,
I pay Rs 11,500 rent and my owner refuse to provide his PAN details. My husband paying the rent through netbanking. Can you advise me what can be done?
Thanks,
Madhuri S
As the payment is through net banking you have proof of rent payment. I would advice to claim tax benefit while filing your tax return. In case tax department needs proof you have the bank statement to show!
Hi Amit,
i have same problem where my landlord doesn't have PAN card, but willing to sign document where it mentions the rent paid and not having the pan card. But my question here is this document need to be in plain paper or govt bond paper and authorized by Notary?
Is it OK to furnish the bank statements to claim the rent paid.
please suggest me as my HR/Accounts processing team clearly states they need PAN card, though i have written several time that landlord doesn't have PAN card. There suggestion is, I need to make adjustment such that it should not exceed 1L and no need of Pan card.
If the landlord says he does not have PAN number and ready to sign the declaration you or your employer should have no problem. The declaration is done on plain paper. You can download the same - HRA Declaration Form – If Landlord does not have PAN Card Number
Hi Amit..
Its really great that you are helping so much by your valuable advice and knowledge.
My landloard always takes the payment by cash, no account transfer or cheque is allowed. There are 8 appatments in our building and each tenant paying around 2 lakh per year. What can i do to apply for HRA or else complain against him if required.
Please help me!
Thank you in advance.
If you pay in cash there is no proof of payment until he issues receipt against the same. This is very common problem but everyone including tax authorities have their eyes closed. I will have to find out if there is an email id or contact information to complaint about tax evasion. But if you want you can ask @adhia03 on twitter. He is head of IT department.
Hi, I have the rent agreement and all payments were made through online transfers. But still owner is neither providing PAN number nor he will sign any declaration. What option I have?
Thanks
Bhaskar
In your case your employer will not give any tax benefit on HRA because of lack of documents. However you can claim rent paid while filing your tax returns.
The problem is if your IT return is open for scrutiny, you will have to show your documentary evidence of all tax exemptions. You can take agreement & bank account details for proof of payment. The income tax officer can decide the case. If you are satisfied GOOD else you can appeal against it!
So in rare chance of scrutiny it may be a long drawn battle. Brace for it! The problem is everyone in income tax department knows about the problem of landlord not sharing their PAN cards but are doing nothing about it!
Hi Amit,
I pay rent to my landlord via online transfer. Rent of INR 14,000 per month. I have been staying for last 3 yrs and still refuses to provide his PAN card no.
i do mention as rent in the comments section during online transfer.
I do have a rental agreement with my landlord.
Any solution for me to get HRA exemption.
Thanks for your advance suggestion.
Your employer would not give you exemption until you give Landlords PAN or a declaration of not having PAN.
But you can claim HRA while filing your tax returns. And in case there is scrutiny or IT officer asks for proof you can show these. But the office may or may not agree!
Thank You:-)