To avail the benefit of HRA or house rent allowance exemption which is part of an employee's salary structure, one needs to quote the PAN of the landlord if the rental amount is over Rs. 1 lakh in a year or Rs. 8,333/ month.
And to make the claim, you need to furnish rent receipts or either the rental agreement with the house owner with your organization.
Here are given 3 such circumstances and how to make the claim against HRA exemption under such possible situations:
1. If re-location for work happens midway during a financial year and rental payment is over Rs. 8,333 per month: In such a case, even when the CBDT says to quote the PAN of the landlord mandatorily, here in as the rental amount on a annual basis does not goes beyond the threshold limit of Rs. 1 lakh, individuals are waived off from providing landlord's PAN or permanent account number.
2. Living in an accommodation i.e. shared with friends: In such a case, you need to produce a copy of the rent agreement clearly specifying the name of other lessees and the contribution made by each to the total rent. Also, a declaration by the landlord detailing your monthly rental contribution will also suffice to make the claim against HRA exemption.
Also, herein payment of rent via net banking or cheque also helps as it serves as the proof of rent payment made for the rental accommodation to your landlord.
3. Shifting for work purpose to different locations in one FY: Also, in this case, an employee will be better off if he collects the rent receipts month on month instead of getting them all at once at the end of the FY. In a case, when rents have been paid to different owners, you need to have the PAN of all house owners, as it will come in handy in case the annual rent for a financial year comes over Rs. 1 lakh in a financial year to make the claim for HRA.