{"id":19679,"date":"2023-09-07T12:19:48","date_gmt":"2023-09-07T06:49:48","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=19679"},"modified":"2026-01-31T14:55:44","modified_gmt":"2026-01-31T09:25:44","slug":"using-pan-card-for-hra-exemption-guidelines-and-benefits","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/using-pan-card-for-hra-exemption-guidelines-and-benefits\/","title":{"rendered":"Using PAN Card for HRA Exemption: Guidelines and Benefits"},"content":{"rendered":"

Using PAN Card for HRA Exemption<\/h2>\n

When submitting claims for house rent allowances (HRA)<\/strong><\/a>, the Indian government has mandated that permanent account number (PAN) card information be provided. To file these forms, which are required if the annual rent paid exceeds INR 1,00,000, a PAN card is now required.<\/span><\/p>\n

On behalf of the Income Tax Department<\/strong><\/a>, the Central Board of Direct Taxes (CBDT) published a circular outlining this new obligation. All renters must now provide their landlord\u2019s PAN card for tax exemption purposes. If you don\u2019t already have one, you should apply immediately because a PAN card is required for HRA exemption<\/strong>.<\/span><\/p>\n

In this blog, we\u2019ll look more closely at the procedures for submitting HRA exemptions and why having a PAN number is necessary.<\/span><\/p>\n

How Does the Government Enforce the New HRA Law?<\/b><\/h3>\n

According to the new rule, to be eligible for tax deductions<\/strong>, each employee who pays more than Rs. 1,00,000 in rent in a calendar year must provide their PAN information. The person must submit a tax exemption claim form, a PAN declaration form, and information about their landlord\u2019s PAN.<\/span><\/p>\n

The following information must be included on the PAN card for the HRA exemption declaration, which must be printed on an A4-sized sheet:<\/span><\/p>\n

    \n
  1. A commitment from the landlord<\/span><\/li>\n
  2. Home or property address\u00a0<\/span><\/li>\n
  3. Rent payment amount<\/span><\/li>\n
  4. Information on the landlord, including a PAN card, name, and address<\/span><\/li>\n
  5. Landlord\u2019s signature<\/span><\/li>\n<\/ol>\n

    Causes of the HRA Legislation Change<\/b><\/h3>\n

    Without even providing the landlord\u2019s PAN information, the government decreased the number of HRA exemptions employees received. The following justifications justify the new law\u2019s adoption:<\/span><\/p>\n

      \n
    1. Employees provided false rent receipts to receive HRA exemptions<\/b><\/li>\n<\/ol>\n

      Employees submitting fictitious receipts that exceed the rent they are paying. Numerous incidents have occurred where employees have claimed HRA exemption by submitting fictitious rent receipts. The number of HRA exemptions rises as an employee\u2019s pay does. Some workers try to claim the HRA exemption to avoid paying taxes on the amount, even though they do not pay rent.<\/span><\/p>\n

        \n
      1. <\/b>Landlords who do not show rental income and avoid paying tax on the same<\/b><\/li>\n<\/ol>\n

        The government learned that many people who rent their property and receive rental income do not pay taxes. The government made it mandatory for all tenants to include the PAN details of the landlord in the HRA exemption claim form to ensure that such a person discloses rent on the same. It is a tool to determine whether the landlord is declaring rental income on their tax returns.<\/span><\/p>\n

        What is the HRA Allowance?<\/b><\/h3>\n

        The HRA is a portion of an employee\u2019s pay to cover up to a predetermined percentage of housing expenses. The government does not anticipate the employees paying tax on this sum because they would be using it for lodging, so they can claim a tax exemption for the HRA amount.<\/span><\/p>\n

        The following amounts are eligible for HRA exemption under the current rules:<\/strong><\/p>\n