How Does the New HRA Exemption Rule Affect Your Tax Reporting?

Income Tax Department Circular on HRA Exemption

The Income Tax Department has recently released Circular No. 08/2013 F.No. 275/192/2013-IT(B) dated 10.10.2013. It states that an employee claiming House Rent Exemption (HRA Exemption) must report the PAN of the landlord to the employer/company if the annual rent paid exceeds Rs. 1,00,000 (one lakh) per annum.

The circular specifies that if the landlord does not have a PAN, the employee can provide a declaration to the employer, including the name and address of the landlord.

Regards,
Ramesh G

You are correct, but the amount varies. Initially, it was at a value of Rs. 180,000 per annum, and last year it was Rs. 200,000 per annum. However, this year, the I.T. Department has reduced it to Rs. 100,000 per annum.

I hope this information is helpful to everyone.

Dear Ramesh, thanks for the details. Is there any change after CIRCULAR NO: 08/2013 F.No. 275/192/2013-IT(B) dated 10.10.2013?

I am residing in Chennai and pay more than a lakh per annum as house rent through cash mode. I applied for HRA exemption with my payroll team for the rent paid during the financial year 2017-18. I have submitted a ‘No PAN’ declaration from the landlord wherein the landlord signed that he/she does not have any taxable income and hence has no PAN. I submitted the rental agreement along with rental receipts also. But my company doesn’t accept those, stating the reason: “Staff who had paid rent in excess of Rs.1 lakh per annum have not submitted the PAN of the landlord. It is mandatory for the employer to obtain the PAN of the landlord for granting HRA exemption to staff.” And also, my company revoked my HRA exemption claim.

Please advise whether this decision from the company is right or wrong. Please support.