HRA Exemption Issue in Chennai
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 my 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 as well.
However, my company doesn't accept these documents, stating the reason: "Staff who have 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." Consequently, my company revoked my HRA exemption claim.
Please advise whether this decision from the company is right or wrong. Please support.
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 my 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 as well.
However, my company doesn't accept these documents, stating the reason: "Staff who have 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." Consequently, my company revoked my HRA exemption claim.
Please advise whether this decision from the company is right or wrong. Please support.