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Hra deduction if employees produces only rent receipt

This query is : Resolved 

(Querist) 02 February 2012


i want to know about the hra deduction allowed only on the basis of rent receipt,and employees not produces any document like rent agreement,and pan no.of land lord .

plz help me and provide the relevant provision about the same,

thanks in advance

CMA Ramesh Krishnan (Expert) 02 February 2012

Rent receipts is enough with landlord details
PAN required as per the following circular

As per the new circular issued by the Income Tax department, employees claiming HRA exemption by producing the rent receipt, will have to mandatorily quote the PAN of landlord/s to the employer where the rent paid exceeds Rs.1,80,000/-per annum. In case the landlord/s does not have a PAN, the employees’ need to collect a declaration duly signed in the format from the landlord and submit to the employer. This declaration form needs to specify clearly, the name and address of the landlord/s. In the absence of any of the above, no HRA exemption will be extended to the employee.

Circular No– 05/2011 - dated 16.08.2011

rohit kumar (Querist) 03 February 2012

dear ramesh sir,

thanks,for guiding me,but sir i have another doubt about rent agreement that if rent agreement does not produce by employees,then hra deduction will be allowed.because in my organisation many employees produces before me fake rent receipt, they paste revenue stamp on rent receipt.

thanks in advance

CMA Ramesh Krishnan (Expert) 03 February 2012

Act is telling only proofs for the rent.bur agreement is the one time document there we cannot conclude whether rent really paid or not, but some of the employer insisting for both agreement and rent receipts.

Employer has to receive and verify this documents, in case found fake the same can be rejected by employer. but while employee declaring that is correct means final responsibility pass on employee`s hand. Employer no need to bother about that.

rohit kumar (Querist) 06 February 2012

dear ramesh sir,

my another query to you is that , can any employee paid rent to his wife and avail hra deduction.

please reply in detail to consider every aspect to this query.

thanks in advance

CMA Ramesh Krishnan (Expert) 06 February 2012

Normally Husband & Wife supposed to stay together, relationship between wife & husband is not commercial nature, Income tax will not allow such commercial advantage between husband & wife

so cannot claim like that

j p daga (Expert) 31 May 2012


can a unmarried daughter can pay rent to father and claim hra.

daughter is working with the father and getting salary from father's firm.

J P daga

CMA Ramesh Krishnan (Expert) 31 May 2012

Its a same manner which i explained above. Unmarried daughter is dependent to parents, it will not bring any commercial relationship. so cannot claim

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