Is landlord’s PAN required for HRA claim? Here is your answer

HRA- If you are employed and live in a rented house, then you can claim tax exemption on HRA i.e. House Rent Allowance while filing Income Tax Return (ITR). But many people have this question in their mind that is it necessary to provide the landlord’s PAN number while claiming HRA? If your annual rent is more than Rs 1 lakh, then the answer is yes, but with some conditions.

What is HRA exemption?

Employees working in government or private companies get HRA along with salary. This is a kind of relief for those who live on rent. The Income Tax Department gives tax exemption on HRA, which reduces the tax amount. When do you need to get a PAN number from the landlord to claim tax exemption on rent in HRA?

Old Tax Regime

If the annual rent of the house is more than Rs 1 lakh, then you will have to share the PAN number of your landlord with your employer. The annual rent of Rs 1 lakh comes to Rs 8,333 per month. Apart from this, the benefit of HRA tax exemption on rent is available only under the old tax system. If you want to choose the option of the new tax system, then no such benefit will be available. Let us tell you when you will need a PAN number.

PAN card must be provided

If your rent is Rs 8,333 per month (Rs 1 lakh/year) or less, you do not need to submit the landlord’s PAN number to claim tax exemption on rent (HRA). If the rent is Rs 8,333 per month (more than Rs 1 lakh per year) or more but up to Rs 50,000 per month, you will have to provide the landlord’s PAN number.

So, there are two income tax compliances that one must take care of- 1. Is the rent more than Rs 8,333 per month? And 2. If so, is it more than Rs 50,000 per month? If the answer to either the first or second or both questions is yes, then you need to provide the PAN number of the landlord.

What to do if the landlord does not provide PAN?

If the landlord refuses to provide the PAN number, you can submit a declaration letter stating that the landlord does not have a PAN. The landlord’s name, address and rent details should also be included. Apart from this, ensure that you have proof of paying rent such as rent receipt, bank statement.