HRA in case of power of attorney

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This discussion explores claiming House Rent Allowance (HRA) exemption when paying rent to someone holding a Power of Attorney (PoA) for the property owner. The key question is whether to use the PoA holder's PAN or the registered owner's PAN for the claim. It's advised to use the registered owner's PAN as the PoA holder acts on their behalf. The discussion also touches upon tax liability, suggesting the registered owner remains liable for income tax unless specific documentation proves otherwise.

Shivansh Kumar

Shivansh Kumar (Querist)

04 April 2020 Hi,

I have query regarding HRA excemption. I stay in a house and pay rent to a person (Mr. A) who has been given power of attorney. The property, however, is registered in name of some other person (Mr. B) with whom I have no contact.

Please advise if I can use PAN of person while claiming HRA who has been given power of attorney (Mr. A). Also, please advise if this income will be taxable in hands of Mr. A or Mr. B.

Thanks.

CA Suresh Jain

CA Suresh Jain (Expert)

04 April 2020 The PoA holder is acting for and on behalf of the land lord. In fact you have the contract with landlord only through his PoA. In view of this you should quote landlord's PAN

Shivansh Kumar

Shivansh Kumar (Querist)

14 April 2020 Thanks for your response.

Just a small clarification. Let's say Mr. A has been given all rights of the property through Power of Attorney, including the right to enter into a rent agreement with the tenant and collect the rental amount, will Mr. B (Registered owner) still be liable to Income Tax?

CA Suresh Jain

CA Suresh Jain (Expert)

14 April 2020 If there are no other document which proves that Mr. B has received the entire consideration and given the possession of the property to Mr. A, Mr. B shall be liable, technically, for Income Tax

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