img

Suspense crime, Digital Desk : As the July 31 deadline for filing Income Tax Returns (ITR) for the Assessment Year 2024-25 approaches, salaried taxpayers are busy organizing their documents to maximize their tax savings. One of the most significant tax-saving components for those living in rented accommodation is the House Rent Allowance (HRA).

However, to claim this exemption successfully and avoid any future trouble from the Income Tax Department, it is crucial to have the correct documentation in place.

The Mandatory Rule: Landlord's PAN is a Must for High Rent

The most critical rule to remember involves your landlord's Permanent Account Number (PAN). If the total rent you pay in a financial year exceeds ₹1,00,000 (which amounts to roughly ₹8,333 per month), you are required by law to provide your landlord’s PAN details when filing your return or submitting proofs to your employer.

This rule helps the tax department cross-verify the rental income declared by the landlord.

What If Your Landlord Doesn't Have a PAN?

In situations where your landlord does not have a PAN card, you are not entirely out of options. To stay compliant, you must obtain a formal declaration from your landlord. This document should clearly state their full name, and address, and confirm that they do not possess a PAN. You should keep this declaration safely with your rent receipts.

Essential Documents for Your HRA Claim

Whether you submit them to your employer for TDS purposes or claim HRA directly while filing your ITR, you must have the following proofs ready:

Rent Receipts: These are the primary proof of your rental payments. Ensure they are duly signed and include the landlord's name, your name, the rental amount, the rental period, and the address of the property.

Rental Agreement: A valid rental agreement is a legal document that substantiates your claim. It should be on a stamp paper of appropriate value and signed by both you and the landlord.

Even if you have already provided these documents to your employer and the HRA exemption is reflected in your Form 16, it is essential to keep copies for your own records. The Income Tax Department can ask for these proofs during scrutiny, and failure to produce them could lead to the disallowance of your HRA claim and a demand for additional tax and penalties.


Read More: New Labour Codes May Make PF Contribution Voluntary To Protect Take Home Pay

Latest breaking news Latest post breaking news HRA claim ITR filing 2024-25 House Rent Allowance income tax return landlord PAN rent receipts Tax Saving salaried employee Income Tax Rules Section 10(13A) HRA exemption rental agreement ITR filing deadline July 31 tax documents proof of rent landlord has no PAN HRA rules Form 16 TDS on salary personal finance Tax Compliance tax notice Income Tax Department tax audit e-filing financial year 2023-24 assessment year 2024-25 tax deduction how to claim HRA documents for HRA HRA calculation rent paid over 1 lakh Tax Planning India tax law Form 12BB Income Tax India tax help financial planning proof of investment ITR help tax filing tips avoiding tax notice HRA proof landlord declaration taxpayer guide rent payment proof tax regulations income from house property taxpayer responsibility tax records.