Landlord’s PAN Mandatory for HRA Exemption

Ans. HRA means House rent allowance as per income tax act, 1961. It means the part of the salary received towards the rent paid for accommodation. It is allowed as a deduction from salary i.e HRA Exemption under section 10(13A).

Ans. HRA exemption is allowed least of the below
a) Actual HRA received
b) 40% of salary* for the non-metro city [or] 50% of salary* for the metro city.
c) Actual rent paid (minus) 10% of salary*
Note: Meaning of Salary* = Basic pay + dearness allowance (DA)

Ans. The rent bills are required by the employer before the end of the financial year for allowing deduction from salary (HRA Exemption) for the purpose of processing form 16.

Ans. If your HRA is up to Rs 3,000 per month, then exempt from the submission of rent receipts.

Ans. If the annual rent paid is more than Rs 1,00,000 per annum, then it is mandatory to disclose the PAN of the landlord to the IT Department to claim HRA exemption. (PAN for HRA Exemption)

Ans. One must obtain a declaration from the landlord with the name and address of the landlord that he is not having a PAN. (No PAN for HRA Exemption)

Ans. Below examples answers your question
Ex-1 Are you working for 12 months in a year?
Ans. Rs. 1,00,000 per annum works out to be Rs. 8,333 per month
Ex-2 Are you working for 9 months in a year?
Ans. Rs. 1,00,000 per annum works out to be Rs. 11,111 per month