HRA Exemption and docs needed as proof by companies ?

POSTED BY Kunal D ON November 27, 2013 6:45 pm COMMENTS (3)

Hi All,

Recently noticed that there is no fixed set of docs that companies ask to verify the HRA claims by employees. Here are a few examples:

1. Some ask for only rent receipts for all months with owner + tenant and other details.

2. Some mandatorily ask for rent agreement + rent receipts.

As with the new CBDT circular that if rent paid exceeds 1 lakh p.a, owner needs to also provide PAN [But which owner will as they all are taking only cash and its unaccounted], I need to know the following aspects:

1. What is the mandated set of docs needed to claim HRA ?

2. Will the set of docs recieved  by the companies as tax proofs be submitted to IT Dept?

3. What to do is the owner does not budge to reveal his PAN details?

Note : The IT Dept and Govt are bent on harassing the salaried class to the core with all such measures as this circular was floated in Oct2013 !

Regards,

Kunal

3 replies on this article “HRA Exemption and docs needed as proof by companies ?”

  1. ashalanshu says:

    Dear Kunal, in case your owner is not co-operating with you for your HRA, Do you have the guts to report him to your assessing officer?

    By the way, if his name, father’s name and DOB is available to you, you can get his PAN from Income Tax site also.

    Thanks

    Ashal

  2. Kunal D says:

    Hi Bemoneyaware,
    Thanks for your inputs.

    Regards,
    Kunal

  3. bemoneyaware says:

    You have rightly pointed out there are no standard set of documents
    No documentary proof required if HRA claim is upto Rs 3000 per month. If the amount exceeds this limit then in that case you will be require to produce following documents as proof of payment.

    Rent receipts :Rent receipt format for HRA tax exemption includes one rupee rev­enue stamp affixed on a complete filled in receipt with complete details of rented house and landlord like address of rented house, landlord name, amount of rent etc. with the sig­na­ture of land­lord receiv­ing the rent.
    Rental agreement in some cases.
    If the rent paid is in excess of Rs. 1,00,000 per annum then PAN Details of Landlord is mandatory for claiming exemption.

    No documents are submitted to IT dept. The tax officer, at the time of assessment/enquiry, shall still have the right to call for the supporting documents.

    If the owner does not budge to reveal his PAN details then you would have to bear tax on amount more than 1 lakh a year

    Govt has control on salaried class and they are using all mechanisms to plug leaks in income tax (usually house owners do not report rent etc).

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