Finding a rented place for living is not an easy task, we should atleast not let go off the perks involved like HRA exemption. As far as taxation is concerned, various things such as rent agreement, HRA benefits, TDS provisions on payment of rentals etc are all taken care of. However many of us tend to forget an important thing- that is landlord’s Permanent Account Number (PAN). As per circular published by Central Board of Direct Taxes (CBDT) by circular No.8/2013, Dated: October 10, 2013, it is mandatory to submit PAN of landlord every year if the amount of rent during a financial year exceeds Rs. 1,00,000.
In case where a landlord does not have PAN, then taxpayer can accordingly ask for a declaration (affidavit) from his landlord with his name and address on it.
Remember to get monthly rent receipts from your landlord which are signed by him as well as a proper rent agreement. Both are very important for claiming HRA exemption and also to avoid any dispute. However salaried employees who get House Rent Allowance up to Rs.3,000 per month don’t have to produce rent receipt, it is always better though to keep a documentary evidence. It can be very helpful in future!
In case you have any questions on HRA, clickhere or raise a ticket on myITreturn.com