If you are salaried employee in a company, your payslip would have a component called HRA Allowances every month which is given by the companies to all the employees. The purpose of this component is to pay the rent for their house. Also, this is the great component to get the tax exemption if you are staying in the rented house.
In the latest circular, Income Tax dept. has announced about the compulsory submission of landlord’s PAN details if the rent amount exceeds the certain limit. This article explores the news in details. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.
also read:
Submit PAN if the total rent exceeds Rs.180000 in a year
If you are paying the rent to your landlord and getting the HRA allowances every month, you are eligible for the tax excemption as per the prescribed limit of HRA exemption. If you want to get the benefits, you must submit the rent receipts to your employer every year at the time of tax proofs collection. If you don’t have much idea on this exemption, please read about HRA exemption carefully and submit your rent receipts, it would save you lot of money from the tax payment.
Till the last year, you can submit the any amount as the rent without additional documents except the rent receipts. But, in the latest regulation, if your total rent payment exceeds Rs.180000 in a year (it means Rs.15000 per month), you have to submit the PAN card copy of the landlord.
In the case, if the landlord doesn’t own a PAN card, he must sign the self declaration saying that he don’t have the PAN card and that copy must be submitted to the employer to get the HRA exemption. This would enforce the tenants to inform the landlords to get the PAN if they don’t have.
Summary
The intention of this update is to maximize the tax collection for the government because there is millions of people not coming under the tax radar but still they are earning more money. It is good move to catch the landlords who are earning lump sum from the rental income and not paying the taxes. If you have doubts, please post it in the comments section.
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December 21, 2011 at 8:56 am
Hi
If a landlord doesn’t stay in India and the rent (Rs.18,000) is his only income in India, does he need to declare it?
Rgds
Ravish
December 21, 2011 at 9:05 am
Hello Ravish,
Yes. You must declare the rent. If you have PAN number you have to provide it or give the self declaration.
Even though you are not in India, you have to pay the Income Tax for the income coming from India.
Thanks,
Krishna
December 21, 2011 at 10:42 pm
Will this be applicable from current year or from next year onwards?
December 21, 2011 at 11:09 pm
Yes..It is from the current financial year.
-krishna
December 21, 2011 at 11:59 pm
It will be a nightmare to many land loards, who are getting the rent as unaccounted money.
Also, employees, submiting inflated rent receipts also will be in trouble.
December 22, 2011 at 12:40 am
Yes. This is good move to capture the tax evasion from landlords.
- krishna
December 22, 2011 at 10:47 pm
Though the landlord has the PAN, if he isn’t willing to disclose it to tenants, what can tenants do? I know, it’s very difficult get the PAN# from landlord. And it make the relationship of party a bit tough. Yea, it’s kinda deadlock dependency. Meaning, tenants can’t submit a form saying his landlord doesn’t have the PAN# as he is actually owing it. But landlord doesn’t give his PAN#. What can we do in this situation?
December 22, 2011 at 11:42 pm
In case one have changed two houses in a year and individual rent paid to both landlords is less than 1.8 lakhs .. do he still need to provide PAN Card.
December 23, 2011 at 2:39 am
Hello Bala,
Yes. This is the situation we will face it. The scenario will happen like this, tenants will ask for the details of PAN and if he is willing to submit the declaration in cases the rent is above Rs.15000. If they are not agreeing, most people who want HRA exemption won’t take the house. But, I would say most of landlords would accept for it, because otherwise they won’t get tenants immediately.
Thanks,
Krishna
December 24, 2011 at 8:14 am
As a landlord how can I can get away with this. I know I can charge them 14999. but Is there any I can take the fund in different format like against Maintainance charges/property tax or other way.
December 24, 2011 at 7:02 pm
Hello Anand,
No. There is no other provision with this rule.
You have to provide the PAN copy.
Thanks,
Krishna
December 24, 2011 at 10:10 pm
I do not think this circular is of any help except catching few high end property owners. This circular could have extended to any rental amount.
Most of the owners having multiple flats but charging only Rs.10K per month per each flat and receiving the rental income in excess of Rs.1.8 lacs are escaped from this circular. It is grossly unfair if some one receiving Rs. 3 lacs as annual rent on multiple flats gets the escape where as owner of a high end flat who just receives Rs. 2 lacs annual rent comes under the scanner. I am unable to understand this differentiation.
December 24, 2011 at 11:06 pm
Hello Krish,
Yes. I would agree with your thoughts, you are talking about the fundamentals and loop hole in the law. It should have been that everyone who receives rent would be come under the income tax radar.
Hope, soon the revision of this act would come.
Thanks,
Krishna
December 26, 2011 at 5:30 am
Hi,
I have paid Rs 20k pm as rent but only stayed for 8months in my previous flat (Total rent paid = Rs 1.8 lacs). In the current flat, I am paying 20k pm again and would be staying for the remainder 4 months.
Do i need to submit the PAN copy of both landlords in this case also?
December 26, 2011 at 5:30 am
EDIT:
Hi,
I have paid Rs 20k pm as rent but only stayed for 8months in my previous flat (Total rent paid = Rs 1.6 lacs). In the current flat, I am paying 20k pm again and would be staying for the remainder 4 months.
Do i need to submit the PAN copy of both landlords in this case also?
December 27, 2011 at 2:05 am
Yes doubt, you will have to provide PAN for both the owners, because the rule says – 1.8L annually or 15K monthly rent.
December 27, 2011 at 4:28 am
Landlord is unwilling to give out PAN details and I am unable to claim full HRa exemption.We pay 18K per month plus 2K for maintenance to the society We may hae to move out but not sure what to do this yr.
December 28, 2011 at 8:54 pm
PAN of lanlord is mandatory for HRA excemption
can i get the relevant IT notification / circular, as it is not available in the incometaxindia website
December 29, 2011 at 6:03 am
if my rent is exactly 15k per month do I still need to collect the pan number from my landlord ? or is it only for an excess of 15k pm (180k p.a.) ?
January 1, 2012 at 6:35 am
Hi,
My question is from tax perspective of landlord.What if the property is in the name of both parent.If they get Rs. 20K per month as rent.Considering that they both dont have any other income,will this liable to tax in the hand of any of the parent(landlord) or we can say that both are getting income of 10K per month and income hence not taxable.
Regards
Dg
January 1, 2012 at 10:45 pm
I don’t think this change none of the way regulating landlords to put in tax scanner. Any way again the employee only going to pay more tax. If one person paying rent of Rs.14000, he will not show the correct one. Because if he shows Rs.14000, he will not get full amount in HRA exemption. Mostly 14,000 minus 40% basic could be his tax exemption. That is the case most of the person showed higher rent and after HRA calculation he get the HRA exemption nearly what he is paying the rent.
Because of this rule, all employees pushed to show actual rent paid and mostly get the HRA exemption amount lesser than what he is paid as rent becuase of exemption criteria.
1.Actual HRA earned by the assessee for the year.
2.Rent paid minus 10% of Basic salary – 75% employees come under this category only
3.40% of Basic or 50% of Basic (in case of Metro cities)
Again and again all the rules crushed the salary employees only.
Thanks
Ganesh
January 3, 2012 at 3:50 am
I am paying the rent of Rs.20000 to co owers. There are two persons who are the owner of the propety and paying the rent proprotianately to both owners ie. Rs. 10000 each. then do I have to submit the Pan Card of both the owner of the property ?
January 3, 2012 at 4:14 am
I am paying a rent of 15,000 to landlord and Maintaiance of 3,700/- to Apartment association, in total i am paying 18700/-. can i claim HRA on 18,700/-?, if so do i need to submit the PAN number of my landlord? as he claims i am paying only 15K to him, so he don’t need provide the PAN details to me?
January 3, 2012 at 8:31 pm
should i still required to provide landloard PAN details if my rent is 15000 per month?
is it applicable for year rent amount >=180000 (including 180K) or >180000 (above 180K).
thanks .. do provide info.
January 3, 2012 at 11:42 pm
There is no Use of such regulations, When I asked my House owner , he simply denied. He asked to increased the Rent by 30%. Now who is going to pay that extra rent.
We salaried person already paying huge Tax amounts, everyone knows where our hard earn money is going. There is no Use of such Rules. Govt should reduce the Tax or increase the slabs to minimize the TAX burden on salaried person. Focus on business mans and Politicians.
Thanks
Manoj
January 3, 2012 at 11:43 pm
This govt should learn something from USA and focus on infrastructure rather then drinking our blood
January 4, 2012 at 5:18 am
My landlord is NRI and Senior citizen. His only annual income in india is rent 186000. As he is senior citizen there is nil tax. So he is not filing returns. Will Providing his PAN would create trouble for him ?
January 4, 2012 at 11:55 am
Hi Krishna,
Can you please tell me about the specification of stamp used rental agreement for HRA exemption proof. Is it mandate to use 500 Rs stamp this year? (earlier we used to submit 100 Rs stamped rental agreement)
Thanks,
Neha
January 5, 2012 at 9:36 pm
In case employer does not have any PAN then employer gives a declaration in this regard. Is there any format available in which declartion is given?
January 6, 2012 at 11:09 pm
is PAN mandatory for Rs.15000/-per month or Rs.15001/- & above per month. please clarify.
January 9, 2012 at 12:38 am
I owe two separate rented accomodations.Also I have rent agreement with both land lords.
Can i claim rent paid for both accomodations under HRA
January 10, 2012 at 3:10 am
Can we have the copy of decleration form stating that the landlord doesnot have the PAN card?
As mentioned by most of the people here, the landlords are very reluctant in providing the PAN card and in any case if they are providing, they are asking tenants to bear the tax burden- to the tune of 33%. As we have just 3 mnths left in ths FY- can we submit the decleration form and next year takes the house where the landlord is willing to provide the PAN card?
regards,
January 10, 2012 at 6:05 am
i was paying a rent of Rs. 7500/- PM from April to July and then i changed my flat and now paying Rs. 16500/- PM. Do i have to provide a pan number of my owner
January 10, 2012 at 11:13 am
Any duration limit upon a tenant which landlord has to provide pan number, if a tenant like me stays towards last 2 months of the year say Nov 15th to Dec 2011 and request landlord PAN No. Landlord says I did not received said Rs1.8 from me and the house vacant for several months., Landlord says how do i know what you are claiming on your side for more than 2 months how would i know.
Landlord is providing rent receipt is that sufficient but said will give pan no next year end for 2012.
January 10, 2012 at 11:52 pm
In this country, is there an option to curb those transfer crores of money in black & white and are indulged in corruption? Why is that the middle class, salaried, people are always squeezed and tortured for pea-nuts where nothing is effectively done to curb the actual big black-sheeps?
January 11, 2012 at 5:06 am
What is the format of declaration? Can anyone provide me the format here ?
Thanks.
January 11, 2012 at 9:09 am
incase the landlord does not give pan number. is there any remedy.
January 11, 2012 at 8:39 pm
Hi,
I wanted to confirm, in which case we need to give the PAN No. of landlord? If he is receiving more than Rs 15000/- or if I am paying more than 15,000/-
Suppose my rent agreement is of Rs 16,000/- which is shared by me and my flatmate. And we both are receiving the rent receipt of Rs 8,000/-. But we are claiming our HRA individually.
In that case I will show the agreement of Rs 16,000/- but receipt of Rs 8,000/-
Do we need to need to declare the PAN No. of my house Owner.
Please explain
Thanks
January 11, 2012 at 10:58 pm
Can I have format of Self declaration from Landlord, if does’t have PAN Card.Please provide the information. Thanks, Madhu
January 12, 2012 at 5:05 am
Is PAN mandatory for rent of Rs.15000/-per month OR Rs.15001/- & above per month , please clarify.
January 12, 2012 at 6:54 am
Hi,
What if the person has the Business and is also the salaryed employes, how does the calculation works.
January 12, 2012 at 8:17 am
I AM WORKING IN UTTAR PRADESH DEPT. HORTICULTURE AND FOOD PROCESSING, I WANT TO KNOW ITS NECESSARY TO SUBMITE A LADLOARD RECIEPTS FOR RENT WITH PAN NUMBER IF MY HRA IS 2760/- MONTHLY.
PLZ REPLY OR GIVE ME THE GOVT SITE WHERE IS MENTION ABT THE RECEIPTS IS NECESSARY FOR HRA BELOW 3000/- MONTHLY.
THANKS.
January 12, 2012 at 10:32 am
How would IT dept/employer come to know if a fake declaration is given by employee himself and higher rentals are claimed to get exemption of entire HRA ?
January 15, 2012 at 9:29 pm
Am having a house in the city but niehter am staying there nor rented. As the school of my daughter and my office are very far off, have been staying in a rented house.
In this sceanario can I claim
1.Home loans principal repayment
2.Home loans interest paid
3.HRA Benefits against rent being paid
Regards
January 16, 2012 at 4:18 am
Can u give me the link for the Income Tax lastet ciruclar in http://www.incometaxindia.gov.in or any other official government websites
January 17, 2012 at 4:00 am
I’m paying rent 9000 Per month, even though my company finance people needs my house owner PAN number is it needed to submit?
January 17, 2012 at 7:00 am
Why to worry about this, can’t we give PAN number which doesn’t exist.
Anyway Rent Slips are going to with Employer and not with IT dept unless IT dept asks for it.
If IT dept asks for your details, you can actually pay tax.
IT dept has lot of work in their plate and has to catch bigger fish.
January 19, 2012 at 12:53 am
Hi, I am staying in Mumbai in a rented apartment. I am paying rent for my parents as well who are staying in my hometown. Can I claim HRA for both the rents – for myself and for my parents? Thanks.
January 19, 2012 at 1:14 am
What should I do my rent is above 15000 and the owner doesn’t have a PAN as he is NRI
January 19, 2012 at 3:36 am
can u lease give the details of Income tax notification addressing the requirment of Land lord PAN CARD. As my land lord is saying as per rules no such requirments is there. He is ready to give subjected to the requirmetns of Income tax rule/notification.
kindly send the details of such notifications.
Best Regards
Kumar