Is there a risk to giving pan to tenant

May be you can get an affidavit made jointly where he too signs and confirms the annual rent paid to you officially.

As far as credibility of your tenant is concerned , you may need to do some back ground verification. As far as the transactions between you and your tenant are bona fide and take adequate precautions like having a genuine rental agreement, try accepting cheque for receipt of rent , file your Income tax return timely then you may have less hassles. Avoid Pan??? If your rental receipts exceed Rs. 1,00,000 you are required to furnish PAN. Just because some tenant misuse the system it doesn't mean universally everyone does it. You ensure you take adequate measures that will not put you in trouble so that, in case of any eventuality you are on the safer side.

Thanks for your response. I agree that bonafide way, I can always make a clarification to IT authorities, but that means lot of hassels. 

As I understand , providing pan is only required for tenant to show it to his emploer. Income tax authorities do not require PAN of landlord at the tme of filing ITR, so , cant the tenant make a refund claim at the time of ITR filing in case he does not get a benefit of HRA currently from employer?

I am just trying to see if there is any way , I wont have to give PAN to tenant becuase of the risks highlighted. I am anyway adding rental income to my return.

Yes, the employee tenant can claim HRA deduction in his/her ITR but he/she will suffer excess tax deduction at source for non intimation of PAN to the employer thereby putting financial hardship.

But, that time is not too far when punching of PAN will be mandatory in the ITR of the tenant going by the way Dept is moving, by digitisation, towards combating of tax evasion and avoidance and contain revenue leakage.

Regards,