Rental agreement with regards to hra exemption

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bALAJI (Querist)

05 January 2013 Hi

For hra exemption, employees need to produce rent receipt along with pan card of the landlord . Pls clarify is it mandatory/requirement/rule that employees need to submit the rental agreement ( leave and license copy) which is court registered or 100 rs stamp paper registered ?.

if yes then its not possible for all to register the rental agreement in court as the cost is the main factor.

Pls clarify the alternate way also

Anil Verma

Anil Verma (Expert)

05 January 2013 According to the notification issued by the Income tax department, now landlord PAN card is must to get tax exemption against HRA allowance. One will have to submit PAN card as a proof if he is applying for more than 15,000 Rs. as monthly rent which means from now on, he needs to submit original rent receipts as proof of rent as well as PAN card copy of the landlord to get the tax exemption on HRA.

Earlier only rent receipt was required, now one has to submit the PAN details of the landlord.

In case, the landlord doesn’t own a PAN card, he must sign the self-declaration saying that he doesn’t have the PAN card and that copy must be submitted to the employer to get the HRA exemption.

Anil Verma

Anil Verma (Expert)

05 January 2013 Further, Agreement is not mandatory.

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