When my friend asked his landlord to give his PAN to claim HRA Exemption ( his Annual rent payment is more than 1 lakh Rupees but less than 2 lakhs). Land owner replied that the ownership of building is in his mother who is 65 years old, he is receiving money on behalf of her . Hence landlord is ready to give declaration from his mother saying that she does not have any other income hence she is not bound to take any PAN. And he is telling my friend has no authority to check the ownership of his building.
Can my friend claim HRA Exemption, will he be in trouble in future.
Question-2 He is also trying to find out another house and succeeded in finding a new house. The new landlord is saying he will not give his PAN since the rent goes to him & his wife equally( the building is under the owner ship of he & his wife). Since the portion of rent goes to him, is less than one lakh (i.e 180000.00*50%=90000/-) , he claims he is not bound to give any PAN number nor declaration .
Practically speaking my friend is giving rent to two different people.
Question-3
If they fail to get PAN number from land lord. Can my friend and his wife (both people are working) Simultaneity claim HRA Exemption 50 % each. Based on the concept that both husband & wife are contributing equally to the payment of rent.
Nb:- all these events are fictional.But somebody asked me all these questions during my job interview. And I do not have any Clue
07 December 2015
For question no 1, you may refer the Rent Agreement to check the validity of the statement of landlord saying that his mother is the owner of the property. If that is proven, get the Form 15H from her. This would solve the problem.
For question 2, TDS is applicable person-wise and not expense wise. So, in the given case, NO TDS is applicable since the threshold limit for each of the co-owners have exhaustd.
Question 3, HRA can be claimed by both in the same proportion. There is no issue in it.
CAclubindia
