House rent declaration

House rent declaration

Quick Access : Payroll > Payroll Declarations > House Rent tab
Accessible to : Employees

If you are staying in a house on rent you can claim a tax rebate on the rent paid. To do so you will have to declare the rent and also submit the rent receipts as per the company policy.


If you declared rent earlier you can see status of  your previous rent declarations. To make a new declarations use "Add New Rent Declaration" button but if you have an existing open declaration you will have to close it before you can make a new declaration. 

If you are declaring rent for the first time then you need to update Landlord details before you can update the rent details.

Steps to be followed to update landlord details -

1. Click on "Add New Landlord" button. A form as shown below will open


2. Enter the landlord name
3. You need to provide Landlord's PAN here, if your Landlord does not have a Permanent Account Number then you need to upload a signed declaration. If the annual rent you are paying exceed INR one lakh and you have not provided Landlord PAN number or Landlord declaration, then you will not get the HRA benefit.


4. "Submit" to save Landlord detail.

Steps to be followed to declare rent details -

1. Click on "Add New Rent" button
2. Complete the following details - Monthly rental, Date from which you are staying on rent. Select landlord name from drop down and provide the address of the house and then click on Submit. 


3. On submission this will go for approval to payroll manager. Payroll manager will have to update city type and then approve.

Amount verified by payroll manager will not be visible to you initially. It will be visible after the annual tax submissions are done and the rent receipts are verified by the Payroll Manager.

Note - As per Indian law if the annual rent paid to a landlord is more than INR 100,000 then you are expected to deduct and deposit tax with the Government. Whether the company allows you to claim tax benefit on HRA without declaring landlord's PAN (or uploading a declaration from him) depends upon your company's policy.

Changing an existing declaration
Employee can edit a declaration which is in Submitted or Approved status by using the Edit option, the revised declaration will go again for approval to the Payroll Manager. On editing changes are allowed only in the Monthly Rental and To Date fields.

Landlord details can also be edited and changed and if PAN number or declaration was not uploaded earlier it can be updated.

Towards the end of financial year employees will have to submit the receipts of rent paid to avail the exemption against house rent. If you do not submit receipt then the HRA paid might be taxed. How receipts are to be submitted depends upon the process being followed in your company. Employees might be expected to update it in the portal or payroll manager might ask them to submit and he would be updating it on employee's behalf.

Refer to the article on "House rent and Tax free year end receipt submission" for more details.

Carry Forward of Declaration
When one financial year ends the rent declaration record gets automatically closed with an end date of 31-March and a new record for the current financial year is created from 1-Apr.



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