Why Landlord PAN Mandatory for HRA Exemption?

Worrying is pan mandatory for HRA exemption. Yes, it is mandatory. The requirement for the landlord's PAN (Permanent Account Number) for claiming HRA (House Rent Allowance) exemption in India is primarily aimed at preventing tax evasion and ensuring transparency in financial transactions related to rental income.

Here's why PAN Card of landlord required for HRA mandatory:

• By providing the landlord's PAN, the tax authorities can verify whether the rental income declared by the landlord matches the income reported in their tax returns. This helps in curbing tax evasion by landlords who might underreport their rental income.

• Requiring the landlord's PAN adds transparency to the rental transaction. It helps in documenting the flow of rental income and ensures that both parties involved (landlord and tenant) are accountable for their tax liabilities.

• Mandating the landlord's PAN enables tax authorities to enforce compliance with tax laws related to rental income. It allows them to track and penalize any discrepancies or attempts to evade tax obligations.

• For tenants, providing the landlord's PAN is essential for claiming HRA exemption. The PAN details of the landlord need to be furnished along with other relevant details when submitting proof of rent paid to the employer for claiming HRA exemption as per the Income Tax Act.

Your query about is owner PAN Card required for HRA should be solved.

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The reason why a landlord's PAN (Permanent Account Number) is mandatory for claiming HRA (House Rent Allowance) exemption is to ensure transparency and curb tax evasion. When you claim HRA, you are essentially asking for a deduction on the rent you pay for the house you live in. To prevent individuals from falsely claiming HRA by showing fake rent receipts or paying rent to a family member or friend, the government requires the PAN of the landlord to be provided. This way, the tax authorities can cross-verify whether the landlord is reporting the rental income correctly or not. So, it is essential to have the PAN of the landlord to claim HRA exemption and avoid any legal implications. read about new tax regime tax slabs

Hey,

If you rent your home, you should know that you can claim HRA (House Rent Allowance) exemption while filing taxes. I asked my accountant what paperwork was needed for the process. He told me, renters only needed a landlord's PAN card. I further asked him why landlord PAN mandatory for HRA exemption?

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Why landlord PAN mandatory for HRA exemption?

PAN card is a 10-digit alphanumeric code issued to citizens by the Income Tax Department of India. It is used to identify taxpayers and helps the government keep track of financial transactions and tax paid.

Landlord PAN number is mandatory for HRA  exemption as the PAN card ensures that the rent paid by the employee is genuine and not just a way to evade taxes.The landlord's PAN card number is verified by the Income Tax Department. In case the owner does not have a PAN card then a self-declaration stating they do not have PAN must be signed as per Circular No. 8/2013.

Is landlord PAN card mandatory for HRA?

If the amount of rent exceeds Rs 1 lakh per annum the PAN (Permanent Account Number)  of the landlord is mandatory. Here are a few  factors that affect HRA Calculation:

• Salary

• HRA Received

• Actual rent paid

• City of residence (metro, non-metro or rural)

This is all from my end on why landlord PAN mandatory for HRA exemption.

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