PAN compulsory to avail HRA Exemption, Is it valid? - Professionals - Taxation - TIK Share
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PAN compulsory to avail HRA Exemption, Is it valid?


CA Pulkit Sharma

2014-01-25

PAN compulsory to avail HRA Exemption, Is it valid?As per Notification issued by Income Tax Department PAN is to be compulsory provided by Employee to claim HRA.

Situations are very tough when Landlord refuse to give the PAN or he does not have one.

In either of the case Employee will not be able to claim the HRA. But is it really acceptable because employees will end up paying the tax on behalf of landlords.

The notification is like TDS, Tax is paid by employees in case PAN of landlord is not available (Since HRA will be taxed).

Practically if landlord refuse to give the PAN, can employee force him? No, employee can not force, it is very difficult to get a new home in big cities.

However Notification is clearified by adding that If the landlord does not have a PAN, the assessee has to submit a declaration to this effect along with name and address of the landlord.