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Hra exemption

ROHIT (ACCOUNTS MANAGER) (96 Points)

22 January 2014

Hello friends,

I am staying in rented house in delhi past 4 years.

but my landlord never provide rent receipt my rent is Rs.10,000 P.M including electricity and water charges. but never provide rent receipt or his PAN number. now as per new rules i need to give declaration. so if i provide declaration about his name and address. He will surely get notice from income tax. then i need to leave that place. because he will then give room to students who doesn't require rent receipt or even agreement also.

my child studying in near areas school. how to overcome this problem. i don't want to give my landlord declaration.

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11 Replies

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 22 January 2014

You are required to file declaration in respect of Rent for HRA Exemption, onlt if rent paid in a year exceeds Rs. 1,80,000/-. Then only you are required to quote PAN No. of your landlord. In your case as the monthly Rent is Rs, 10,000/- i.e. Rs 1,20,000/- in a year, you are not required to file any declaration. You can claim HRA benefit by submitting Copy of Rent Agreement to your employer. You can submit other proof of payment od Rent like Bank Statement instead of Rent Receipt.

ROHIT (ACCOUNTS MANAGER) (96 Points)
Replied 22 January 2014

Originally posted by : SAURABH NENE
	You are required to file declaration in respect of Rent for HRA Exemption, onlt if rent paid in a year exceeds Rs. 1,80,000/-. Then only you are required to quote PAN No. of your landlord. In your case as the monthly Rent is Rs, 10,000/- i.e. Rs 1,20,000/- in a year, you are not required to file any declaration. You can claim HRA benefit by submitting Copy of Rent Agreement to your employer. You can submit other proof of payment od Rent like Bank Statement instead of Rent Receipt.

Thanks saurabh but from oct 2013 onwards limit reduced to 1,00,000/- that's my concern.

Mihir (Wealth Manager) (5293 Points)
Replied 22 January 2014

You seem very sure that your landlord will receive a notice from income tax if you declare his PAN.

ROHIT (ACCOUNTS MANAGER) (96 Points)
Replied 22 January 2014

i am taking precautionary measure. because i am staying here past 4 years. if he get noticed surely i need to leave that room.

manoj katara (Service) (209 Points)
Replied 22 January 2014

Simply Bifarcate the Heads & then show seperately.

Rent Component Seperate Suppose 8000/- p.m.

Rest Electricity & Water Suppose Rs 2000/- p.m

will not qualify for deduction under HRA and dont show in rent receipt

hope it may serve your purpose & your problem may be solved.

CA Neha Agrawal (CA) (825 Points)
Replied 22 January 2014

Please note PAN of landlord is to be declared if rent paid in a year exceeds Rs. 1.00 lakhs.

And not Rs. 1.80 lakhs as mentioned above.

amit kumar (Student CA Final ) (123 Points)
Replied 22 January 2014

Can any one Provide the notification about the limit reduced to 1 lakh?

shrinath (CS Final and CA Fina) (65 Points)
Replied 23 January 2014

PAN need to be declared in case rent payment exceeds inr 1lakh per annum

Ravindra Nagda (CA) (37 Points)
Replied 23 January 2014

As per new circular, now if you pay more than Rs. 1 Lakh per annum as rent then you have to give PAN of your landlord to your company & if your landlord has not PAN then you have to give a declaration of it to your company in a specific format.

It is not mandatory that Income Tax Department will send a notice to every landlord who declare that he has not any PAN, so be patient.