How to claim HRA benefit under Section 10(13A) if you do not have landlord’s PAN - Details Here

How to claim HRA benefit under Section 10(13A) if you do not have landlord’s PAN - Details Here


HRA or House Rent Allowance is a component of salary provided by employer to his employee. If you receive HRA as part of your salary and you live in a rented accommodation, then you can claim full or partial HRA exemption under section 10. 

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

If You are a salaried employee and get HRA as part of your salary, While you paid rent to your landlord but he refused to give his PAN details . Since you could not give the PAN details, your employer denied the HRA benefit. Now what should you do?
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.

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