The PAN card standoff
To claim HRA exemption, there is a strict reporting rule about your landlord's PAN — the permanent account number every taxpayer has.
If your annual rent exceeds ₹1,00,000 (about ₹8,333 a month), you must report your landlord's PAN to your employer (Source: CBDT Circular on HRA, Section 10(13A)).
| Annual rent | Landlord PAN needed? |
|---|---|
| Up to ₹1,00,000 | No |
| Above ₹1,00,000 | Yes |
But what if the landlord refuses — usually to avoid declaring rental income?
Option 1: the declaration route
If the landlord genuinely has no PAN, ask them to sign a formal declaration to that effect, which you give your employer with the rent receipts.
Reality check: most landlords who refuse actually have a PAN and simply will not share it — they are unlikely to sign a false declaration.
Option 2: claim it directly in your ITR
If you cannot give the PAN to your employer, payroll taxes your HRA fully. You can still claim the exemption yourself in the ITR — but this is risky. If the department reviews a large HRA claim with no landlord PAN, it may demand proof. Fail to provide it and the claim is rejected, with tax plus interest payable.
The best approach
Always ask for the PAN before signing the lease. A refusal is a red flag worth noting early.
What you should do
- Request the landlord PAN in writing at the start of the tenancy.
- Keep the rent agreement, receipts, and bank transfers as backup.
- Be cautious claiming above ₹1 lakh rent without a PAN — weigh the notice risk.
Common mistake
Inflating rent just below or above ₹1 lakh to dodge the PAN rule. The bank trail tells the real story, and mismatches invite exactly the notice you were avoiding.
How LastMinute ITR helps
Missing documents are stressful. LastMinute ITR tells you precisely which proofs your HRA amount needs, shows the exemption in your deductions, and compares both regimes so you do not over-rely on a shaky claim. You file and e-verify on incometax.gov.in.