Tax Returns: Steps to Take If Your Landlord Withholds PAN Information for HRA Exemption
Tax Returns: Steps to Take If Your Landlord Withholds PAN Information for HRA Exemption
To successfully claim the HRA exemption, salaried individuals must provide certain documents and evidence of rent payments.
One notable exemption available under the old tax regime is the house rent allowance (HRA), which can significantly decrease the overall tax liability for salaried individuals. HRA exemptions can be claimed in accordance with Section 10(13A) of the Income Tax Act, 1961. To benefit from these tax advantages, it is essential that the HRA is explicitly stated on your salary slip. To successfully claim the HRA exemption, salaried individuals must provide certain documents and evidence of rent payments when submitting their Income Tax Return (ITR).
Documents required to claim HRA exemption include:
- The HRA portion listed on your salary slip
- Form 16, which will show tax deduction details for the HRA amount in Section B
- A rent agreement along with rent receipts, with at least one receipt for each quarter, and
- The landlord’s PAN if the total rent paid exceeds Rs 1 lakh in a financial year
Steps to Take If Your Landlord Won’t Share PAN Information
If your landlord does not possess a PAN card and your yearly rent surpasses Rs 1 lakh, you must obtain a declaration from them confirming their lack of a PAN card. This declaration should include their name and address.
Conversely, if your landlord declines to share their PAN details, you can contact the Income Tax Department to request this information. In your request, you will need to provide your landlord’s personal details.
In summary, having the PAN card information is crucial for tax officials to verify the rental income reported by your landlord against the income shown in their tax returns. This process ensures that landlords fulfill their tax obligations on rental income. Additionally, remember that the tax deduction details related to the HRA will be reflected in Section B of Form 16, and you will need a rent agreement and receipts (at least one for each quarter) along with the landlord’s PAN if the rent exceeds Rs 1 lakh in a financial year.
