Obtain landlords PAN if rent exceeds Rs. 15,000/- per month
1. Employees who are paying rent of more than Rs. 15,000/- per month (more than Rs. 180,000/- per year) and claiming HRA benefit and are compulsorily required to furnish the Permanent account number (PAN) of the landlord to its employer in order to claim the HRA benefit.
2. In case the landlord does not hold a PAN, then in such a situation, a declaration is to be obtained from the Landlord confirming that he does not hold a PAN. Such declaration must be signed by the landlord with complete name and address and identifying himself by mentioning his valid ID number (like DL, Adhar, passport, etc.). Copy of declaration format attached.
3. In case any of the above documents are not provided by the employee to his employer, HRA benefit cannot be provided.
4. There are no alternatives or options provided in the circular if PAN / declaration is not available. Thus if the PAN / declaration signed by the landlord is not available, then in such a situation HRA benefit cannot be given to the employee from the ongoing year i.e. 2011-12 onwards
CAclubindia
