Confused About Rental Agreement and PAN for Tax Exemption? Need Advice!

Hi, last year (2012-2013) I submitted the rental receipt for income tax exemption. This year, my management is asking for the rental agreement and the PAN Number of the landlord. I am paying the rent with mutual understanding and can provide the rental receipt, but I do not have the rental agreement for this year (2013-2014).

My salary is 19k per month, and the rent I have paid is 5k per month. Could you please suggest which documents are mandatory? Please help.

The procedure for HRA exemption remains the same but is now restricted. Those who are paying rent above ₹8,333/- per month (₹1 lakh per annum) are required to submit the PAN of the landlord. A rent agreement is absolutely not required. Please find the attachment for more details.

Regards,
Prabhakarn Ji

What needs to be done if HRA becomes taxable? During the investment proof form submission, a declaration form from the landlord (as he doesn't have a PAN number) was missed. So, the entire HRA amount, approximately 1,10,000 rupees, becomes taxable. Tax has been deducted from my salary, around 10,000 Rs.

How can I recover this amount? Is it possible through IT returns? Can anyone suggest a solution?

Thanks,
Vellanki

Please request your landlord to provide a duplicate form and submit it. Since you are paying HRA of 1.10 lakh, it is necessary to furnish the landlord's PAN number; otherwise, it may not be accepted. For recovery, you need to file your ITR before the stipulated deadline (July 31*) and you may receive a return after assessment by the IT department. Check with your HR and Finance departments for more information.

Regards,
Vellanki

You have not mentioned how much HRA you get. If you are receiving HRA up to Rs. 3000/- per month, you are exempted from providing a rent receipt to your employer. However, the assessment officer can ask for the rent receipt from you. If you are receiving HRA of more than Rs. 3000/- per month, you need to submit the rent receipt to avail HRA exemption.

As mentioned by Hegde ji, since you are paying rent less than Rs. 1 lakh per annum, you do not need to provide the PAN of the landlord. This is as per the Income Tax Law. However, under the Stamp Duty and Registration Act, when you are paying rent, it is mandatory to have a registered and stamp duty paid agreement.

Regards

Hi Manjunath, do I need to submit the rent receipt forms again? Only the declaration form from the landlord (as he doesn't have a PAN number) is fine to submit in ITR. If I submit below 1 Lakh as HRA at the time of IT returns form submission in July 2014, will the IT department accept it and provide me with returns of around ~10K, which is taxable now? Please clarify.

Thank you,

Vellanki

Dear Vellanki,

Yes, you need to submit the rent receipt with the landlord's PAN. In case you are paying less than 1 lakh per annum, there is no need to furnish the PAN of the landlord, and the same will be considered.

Submit investment proofs before March with the rent receipt.

Get Form 16.

Assess IT and file ITR (July 2014).

Hope you are clear.

Regards,
[Your Name]

Thank you very much for your answers. Regarding your comment "Submit Investment proofs before March with rent receipt," it is a bit confusing to me. I've already submitted the rent receipts to my company. The date of submission has already passed, and they didn't consider it now. Is there any chance to submit the rent receipt forms again from a source other than our company? Could you please let me know the best way to determine the taxable amount (HRA) when I file ITR (Jul-14).

Thanks,
Vellanki

It's left to company internal guidelines. Most companies don't accept requests after February since employers have to file before March 31. However, try to make a request stating an explanation for the above. If there is no alternative, contact any Chartered Accountants. Hope for the best.

I filed my IT returns in the month of July through an agent who came to our firm. He submitted my IT filing offline, not e-filing. The guy told me that I would receive an amount of Rs. 7K as my HRA became taxable because I submitted all the rent receipt forms for the year 2013-14. He gave me an acknowledgment form when I submitted. Do I need to send it to Bangalore's address? Or is it fine if I don't need to send it to get that amount?

Kindly advise.

Thanks,

Vellanki

Yes, you should submit to IT CPC-Bangalore, which is mentioned in your Acknowledgement form ITR-V. It's mandatory; otherwise, you won't get reimbursement.