Landlord’s PAN Mandatory for HRA Exemption

The Income Tax Department has laid down (via CBDT circular 8/2013 dated 10th October 2013) that

  • where the annual rent paid is more than Rs 1,00,000 per annum – It is mandatory to report the PAN of the landlord to the IT Department to claim HRA exemption.
  • in case the landlord does not have a PAN – one must obtain a declaration to this effect from the landlord with name and address of the landlord.

An annual rent of Rs 1,00,000 works out to Rs 8,333 per month – therefore if you are taking a house on rent and making a payment exceeding Rs 8,333 per month – remember to obtain the landlord’s PAN or you may lose out on the HRA exemption.

In case the landlord does not have a PAN they must be willing to give you a declaration. It’s important to do this before you take the place on rent – saves you the hassle of running after your landlord for PAN at the time of tax filing.

Do note that salaried employees earning HRA up to Rs 3,000 per month are exempt from the production of rent receipts. Though – we highly recommend you to keep those for your own record. This has been laid down in the CBDT circular no. 8/2013 dated 10th October 2013 as well as in 20/2015 dated 2nd December 2015.

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