1. Income Tax HRA claim: Even if you do not have landlord’s PAN, here is how you can do it

Income Tax HRA claim: Even if you do not have landlord’s PAN, here is how you can do it

The newly introduced Rule 26C of the Income-tax Rules, 1962 requires employee to mandatorily furnish Form 12BB mentioning name, address and details of PAN of landlord where rent paid during the year exceeds Rs 1 lakh as evidence towards HRA claim.

By: | Updated: July 11, 2017 4:26 AM
The newly introduced Rule 26C of the Income-tax Rules, 1962 requires employee to mandatorily furnish Form 12BB mentioning name, address and details of PAN of landlord where rent paid during the year exceeds Rs 1 lakh as evidence towards HRA claim. (PTI)

You can claim HRA benefit under Section 10(13A) even if you don’t have PAN of landlord

I am a salaried employee and get HRA as part of my salary. While I paid rent to my landlord he refused to give his PAN details . Since I could not give the PAN details, my employer denied the HRA benefit. Now what should I do?

Reghu Krishnan

The newly introduced Rule 26C of the Income-tax Rules, 1962 requires employee to mandatorily furnish Form 12BB mentioning name, address and details of PAN of landlord where rent paid during the year exceeds Rs 1 lakh as evidence towards HRA claim. In case of failure, employer can deny the benefit of HRA while deducting tax on salary income.

However, you can still claim the benefit of HRA while filing your return of income. This is for the reason that requirement of furnishing PAN details of Landlord under Rule 26C is only for the purpose of deduction of tax at source on ‘salary income’ by the employer. There is no change in Section 10(13A) of the Income-Tax Act, 1961 which provides for HRA exemption. However, in such case, you should keep all the documentary evidence such as rent agreement, rent receipt, bank statement for proof of rent payment so as to substantiate HRA claims before the tax officer if your case is selected for scrutiny.

I am a non-resident Indian working in Canada for the last 5 years. I have a residential house in Mumbai which I had purchased when I was resident in India. Now, I wish to sell the house located in Mumbai and buy a residential flat in Canada. What is the tax implications for the same?

Swapan Agarwal

Under the Income-Tax Act, the benefit for reinvesting in property outside India is no longer available due to specific amendment in Section 54 by the Finance (No.2) Act, 2014 restricting the investment outside India. As such, you shall not be eligible to claim the reinvestment benefit under Section 54 for the investment in a flat in Canada.

Also Watch:

The capital gains shall be chargeable to tax as long term capital gains @ 20% (plus applicable surcharge and cess). You can claim exemption under section 54EC up to Rs 50 lakh by investment in NHAI and REC Capital Gains Bonds or by investing in residential house in India under Section 54F of the Act.

The writer is founder of RSM Astute Consulting Group. Send your queries to fepersonalfinance@expressindia.com

 

  1. G
    Gopal Sharma
    Jul 12, 2017 at 9:58 am
    I want to know that material will go to weigh brige before issue bill under GST act
    Reply
    1. I
      Irfan Ansari
      Jul 11, 2017 at 10:45 pm
      Sir, I am a central government servant and my gross ry for the financial year 2016-17 is 785000/-. I pay 7000/- per month as monthly rent through cheque i.e. 84,000/- per annum. But my employer gave me HRA rebate of Rs.28250/- only as shown in my form no.16. Is it OK? Or should I claim for more rebate while filling ITR. If yes, how much can I claim while filling ITR. Is there any formula for calculating HRA rebate? Thanking you.
      Reply
      1. C
        CA Srinivas
        Jul 12, 2017 at 10:18 am
        Hi Irfan Ansari, You cannot claim for the full rental amount you are paying. The exemption is based on the least of the following options: The actual amount allotted by the employer as the HRA. Actual rent paid less 10 of the basic ry. 50 of the basic ry, if the employee is staying in a metro city (40 for a non-metro city). Hope this will clarifies your doubt. Kindly do let me know still if you need any further info from my end.. Thanks! Best Regards CA Srinivas
        Reply
      2. K
        Kiran Patnaik
        Jul 11, 2017 at 9:32 pm
        Hi My family is in different city from where i work. I am staying in a hostel. Can i claim HRA for the house i taken for my family instead my hostel rent?
        Reply
        1. S
          Shankar S N
          Jul 11, 2017 at 8:10 pm
          Whether the use 26c of Income Tax can be made applicable to pensioners also?
          Reply
          1. K
            KAVIRAT SURYA PRAKASH RAO
            Jul 11, 2017 at 7:15 pm
            Very useful information to all employees.thanks a lot.
            Reply
            1. S
              Sairajan
              Jul 11, 2017 at 12:02 pm
              I takeup small contract works like electrical, plumbing, colouring and transportation ( house shifting ) engaging daily wage labours average my income rs 300000 per annum after all working expenditures. Now how I have to file my incometax returns
              Reply
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