House rent allowance u/s. 10(13a)

This query is : Resolved

Abhishek Roy Choudhury (Querist)
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18 January 2015 A person living in a rented house and he is eligible to get house rent allowance from his salary but his landlord is refusing to show his PAN No and his company told that without the PAN No of the landlord they are unable to show the exemption in Form 16 but he has original rent agreement and rent receipts. Please suggest whether he can claim exemption in his I.T. Return.

With Regards,
Abhishek.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 January 2015 In case a landlord doesn’t have a PAN, then a declaration needs to be filed by the employee by declaring the name, address & details of landlord. It should be duly signed by landlord. In case a landlord’s rental income is assessed in Income Tax then he’ll not refuse to provide PAN. But in case he wants to evade tax by not giving PAN that cannot be allowed as per Income Tax Act. One has following options:a) Provide PANb) Provide Declarationc) Pay Rent but do not claim exemptiond) Find out a new landlord who provides PAN.
PAN of landlord is not necessary if assessee is paying rent below Rs.8,333/- per month. However, in that case it is always recommended that rent is paid either by cheque or bank transfer which will be a record for the assessee. Also, in case the Assessing Officer demands proofs, bank entries will prove to be a better substitute than rent receipts.
As he is having rent agreement and rent receipts HRA can be claimed in IT return proof can be shown to AO if he demands it.

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