Hra exsumption for current fy 2011-12

This query is : Resolved

sumeet (Querist)
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14 March 2012 Sir,
I am working in Private company in Delhi.

Please clear my point regarding the HRA exemption.

It has been brought to my notice from our Finance department that ;
If HRA for the FY 2011-12 will be more than Rs. 15,000/- per month then i have to submit the Landlord PAN number, name & address only submitting Rent receipt will not exsumpt me from HRA.

If HRA is less than Rs.15,000/- per month then i have submit only the rent receipt.

Sir, my query is whether the limit of Rs. 15,000/- per month has been brought by Govt. of India or else our company Finance department are making this as a upper limit for HRA exsumption without owner's PAN number.

Please reply as soon as possible otherwise they will deduct the tax from my current month salary.

Please contact me at sumeet.malik@wspgroup.in
or call me at
09711603767
011-46014616
am from new delhi.
thanks,
Sumeet Malik

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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14 March 2012 Dear Friend, According to provisions of Section 194I of the Income Tax Act,1961 TDS should be deducted in case of Rent Payment for more that Rs. 180000/-p.a. Now in your case if excess of Rs. 15000/- has been paid during the year then TDS should be deducted. But you are an individual and not covered under provisions of Section 44AD then you should only submit the rent receipts and PAN No. of your owner. Thanks

sumeet

sumeet (Querist)
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14 March 2012 Sir,

thanks for your reply...

Further to your answer, i have one small query;

By submiting the Rent receipt only will not be sufficient even if I Pay monthly rent more than Rs. 15000/-.
Because landlord dont give their PAN no. , they are saying we can only sign the Rent receipt only and no other document they will give to me.

Please reply...

Thanks & Regards,
Sumeet Malik
+91-9711603767
!! Sir, can you give me ur email id in case for any future need !!

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 The requirement to submit the landlord’s PAN number for HRA (House Rent Allowance) exemption is based on guidelines provided by the Income Tax Department. Here's a detailed explanation of the HRA exemption rules and the requirement related to the PAN number:

### **HRA Exemption Guidelines:**

1. **HRA Exemption Rules:**
- **HRA Exemption Calculation:** The exemption is calculated based on the least of the following three amounts:
- Actual HRA received.
- Rent paid minus 10% of salary.
- 50% of salary (for metro cities) or 40% of salary (for non-metro cities).

2. **PAN Requirement:**
- **Rule for PAN Submission:** As per the Income Tax Rules, if the monthly rent paid exceeds ₹15,000, it is mandatory to provide the landlord's PAN number. This requirement is in line with the Income Tax Act amendments aimed at ensuring proper reporting and to prevent tax evasion.
- **Submission:** You need to submit the landlord’s PAN number, name, and address to your employer for HRA exemption if your rent exceeds ₹15,000 per month.

3. **If the Rent is Less Than ₹15,000:**
- **Documentation:** If the monthly rent is ₹15,000 or less, you are only required to submit rent receipts and a rental agreement to claim HRA exemption.

### **Legal Reference and Practical Steps:**

1. **Income Tax Rule:**
- **Circular Reference:** The requirement for providing the landlord’s PAN number if the rent exceeds ₹15,000 per month was communicated through various circulars and amendments to the Income Tax Rules. Specifically, the requirement was highlighted in the [Income Tax Rules, 1962](https://www.incometaxindia.gov.in/pages/tax-information-services.aspx) and related circulars.

2. **Practical Steps:**
- **Request for PAN:** Politely request your landlord to provide the PAN number, as it is a requirement under the law for HRA claims if the rent exceeds ₹15,000 per month.
- **Document Submission:** Submit the PAN number, name, address of the landlord, along with the rent receipts to your employer’s finance department to ensure your HRA exemption is processed correctly.

3. **Alternative Solutions:**
- **Declaration:** If the landlord refuses to provide the PAN number, you may need to discuss this with your employer’s finance or HR department. They might require an alternate declaration or certificate.
- **Tax Adjustment:** If unable to provide the PAN number, you might have to pay tax on the HRA amount which could otherwise be exempt, or the employer might withhold tax until proper documentation is provided.

### **Summary:**

- **For Rent Exceeding ₹15,000 per Month:** The PAN number of the landlord is required by the Income Tax Rules to claim HRA exemption.
- **For Rent Less Than ₹15,000 per Month:** Only rent receipts and a rental agreement are required.

Since the PAN requirement is stipulated by tax regulations and not merely a company policy, it’s important to comply with these rules to ensure your HRA exemption is correctly processed. If you face difficulties with the landlord, discuss this situation with your employer and seek their guidance on how to handle it.

For precise details or if you have additional queries, contacting a tax consultant or legal expert might be beneficial.