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PAN No of House Owner MUST to claim HRA 2008-2009

varma (Lead) (30 Points)

26 September 2008

The Payroll person came in last month and told all the employees that from this year - we also have to mention PAN card details of the houseowner to claim HRA ( For rent amounts > 8000 Rs per month ).Is this true , where can I find this new rule on Income tax site or any valid source of information on this?

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4 Replies

RAJAN GUPTA (SERVICE) (653 Points)
Replied 26 September 2008

This is not true ,so there is no need to search the rule

Bala (CFO, Cogzidel) (59 Points)
Replied 29 September 2008

Hi,

This looks like your internal HR policy.

To claim HRA, normally companies insist for only rent receipts as a proof of paying rent.

There are instances where employees, who either stays in own property or stays in rented property but doesn't pay rent, also claim HRA by simply producing rent receipts.

Hence, companie go a step ahead to ensure that this kind of illegal activites do not emerge. So, they insist for things like Rent Agreeement, PAN of house owner etc to ensure that the possibility of faking is remote.

varma (Lead) (30 Points)
Replied 29 September 2008

Hi - It is correctly said.You are right. Last year they have asked us to produce RENTAL Agreement along with receipts. And this year they are saying PAN no of house owner is must .When somebody asked whether houseowner has no PAN card - what to do? , the Payrolls guy replied syaing "Ask your houseowner to apply for it or you have to leave HRA unclaimed" !! Others in my office are still believing its a rule from Govt.

Originally posted by :Bala
"	Hi, This looks like your internal HR policy. To claim HRA, normally companies insist for only rent receipts as a proof of paying rent. There are instances where employees, who either stays in own property or stays in rented property but doesn't pay rent, also claim HRA by simply producing rent receipts. Hence, companie go a step ahead to ensure that this kind of illegal activites do not emerge. So, they insist for things like Rent Agreeement, PAN of house owner etc to ensure that the possibility of faking is remote.	"