Reporting landlord & housing-loan lender PAN in the fourth quarter Form No. 24Q

Reporting landlord & housing-loan lender PAN in the fourth quarter Form No. 24Q

Currently, employees who wish to avail HRA exemption are required to submit the PAN of their landlord(s) to their employer if the aggregate rent payment exceeds Rs 1 lakh in a year. Until FY 2015-16, employers were not required to submit information on landlord PAN to the Income Tax Department. This changed in FY 2016-17. As per the Income Tax Department notification dated 29-Apr-2016 (No. 30/2016), employers will have to report the PAN of the landlord in Annexure II of Form No. 24Q (fourth quarter) from FY 2016-17 onwards.

The Income Tax Department has notified the format of the fourth quarter Form No. 24Q in which employers should enter the following information.

Information Value

Column No. 357 – Whether aggregate rent payment exceeds rupees one lakh during previous year

Value “Y” (Yes) or value “N” (No). This is a mandatory field in Form 24Q from FY 2016-17 onwards.

Count of PAN of the landlord

Enter the total number of PAN of the landlords. The value in this field should be a positive number (greater than 0) and is mandatory when value “Y” is entered in the previous field (i.e. Whether aggregate rent payment exceeds rupees one lakh during previous year). No value is to be entered under this field in case “N” is the value in the previous field.

PAN of landlord 1**

Structurally valid PAN of landlord 1 must be provided, only in case value “Y” is entered for the question, “whether aggregate rent payment exceeds rupees one lakh.” No value is to be entered under this field in case of value “N” (stands for No).

Name of landlord 1**

Name of the landlord 1 must be provided. Value for this field is to be provided only in case “PAN of Landlord 1” is entered.

** There are 4 placeholders available for PAN and name of landlord (PAN of landlord 2 etc.) in Form No. 24Q. This means that PAN and Name details of up to 4 landlords can be provided.

What if landlord does not have PAN?

The Income Tax Department, by way of its salary TDS circular (No. 1/2017) for the financial year 2016-17, states that an employee can submit a No-PAN declaration by the landlord in case the landlord does not have PAN.

Section 5.3.9 in the circular states:

In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

In other words, the revised Form No. 24Q data format which seeks landlord PAN information is in conflict with the above circular.

In case an employee submits a no-PAN declaration, an employer while submitting Form No. 24Q has to answer “N” (stands for No) to the question, “whether aggregate rent payment exceeds rupees one lakh during previous year?” currently. This would of course be misrepresentation of facts to the Income Tax Department. But there is no other option available to an employer.

Employers can enter only a structurally valid PAN in the PAN field. Ideally, the Form No. 24Q should allow employers to submit a value such as “PANNOTAVBL” in case an employee submits a No-PAN declaration. Incidentally, Form No. 24Q allows entry of “PANNOTAVBL” for employee PAN.

Problem with submitting housing loan lender PAN too

There is a similar problem with regard to submitting the PAN of housing loan lender. While Form No. 12BB requires employees to submit the PAN of certain categories of housing loan lenders (such as financial institutions and employer) only if PAN is available, the Form No. 24Q mandatorily requires PAN of the housing loan lender to be entered in case an employee seeks housing loan interest benefit.

Suggestion

Form No. 24Q should allow employers to submit a value such as “PANNOTAVBL” in case an employee submits a No-PAN declaration or if housing-loan lender PAN is not available. Incidentally, Form No. 24Q allows entry of “PANNOTAVBL” for employee PAN.

Employers will start filing the fourth quarter Form No. 24Q for FY 2016-17 in full earnest from 01-Apr-2017. We request the Income Tax Department to notify new data format for Form No. 24Q before April 2017 in order to address the landlord/housing-loan lender PAN issue.

UPDATE (22-Feb-2017):

The Income Tax Department has announced that landlord PAN is not mandatory for Form No. 24Q. In a release, the departments has said:

Validation for “PAN of Landlord” field has been revised for form 24Q-Q4 under Annexure II (i.e. Salary details) from F.Y. 2016-17 onwards.

Existing Validation of structurally valid PAN for field no. 41, 43, 45 and 47 has been relaxed. These fields may contain any value from the below mentioned when the landlord does not have PAN.

1 GOVERNMENT: This is applicable when landlords are Government organizations (i.e. Central or State).

2 NONRESDENT: This is applicable when the landlords are Non-Residents.

3 OTHERVALUE: This is applicable when the landlords are other than Government organization and Non-Residents.

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Leave a Comment (21) ↓

21 Comments

  1. Rakesh March 3, 2017

    hi,
    so if pan is not available we can accept declaration from Landlord also

    reply
    • gautham March 4, 2017

      Yes, we can accept no-PAN declaration from landlord.

      reply
  2. mohan parashar March 9, 2017

    a employee salary gross Rs.15500/-and break up as basic Rs.10000/-+hra Rs.4500+convayance Rs.1000/-. we deduct pf Rs. 1200/- on basic Rs. 10000/-. it is correct or not. tell us.

    reply
    • gautham March 9, 2017

      PF should be calculated on Rs 11,000 (Basic + Conveyance).

      reply
  3. Rakesh April 10, 2017

    In a recent Income Tax Appellate Tribunal, The bench even enumerated an indicative list of documents as supporting evidence arising normally during a tenancy.
    The documents may include leave and licence agreement, letter to society intimating about tenancy, payment through bank, cash payments backed with known sources, electricity bill payments through cheques, water bill payments through cheques etc besides the correspondence during the period of alleged tenancy, the bench said.

    is it necessary been an employer to ask for other documents apart from Rent receipts.

    reply
    • gautham April 10, 2017

      It is up to the employer. The law simply states that the employee needs to ascertain the veracity of the rent payments/investments made for the purpose of tax saving.

      reply
  4. JANAK April 20, 2017

    Form No. 24Q should allow employers to submit a value such as “PANNOTAVBL” in case an employee submits a No-PAN declaration or if housing-loan lender PAN is not available. Incidentally, Form No. 24Q allows entry of “PANNOTAVBL” for employee PAN.

    Any update regarding housing loan lender is state or central government which have no PAN ???
    Presently TDS Return not Velidate Without PAN, I try for “PANNOTAVBL” but error in validation??
    Pls provide solution for this.

    reply
    • gautham April 20, 2017

      1. In case the landlord does not have PAN:

      The PAN field is no longer mandatory. You can one of the below codes (words in bold) when the landlord does not have PAN.

      GOVERNMENT: This is applicable when landlords are Government organizations (i.e. Central or State).

      NONRESDENT: This is applicable when the landlords are Non-Residents.

      OTHERVALUE: This is applicable when the landlords are other than Government organization and Non-Residents.

      2. In case the housing-loan lender PAN is not available:

      Unfortunately, this field is still mandatory. You can see the financial institution name declared by your employees and use the PAN available in the list below.

      https://www.hinote.in/cms/display/HUG/PAN+of+housing-loan+lenders

      reply
  5. Sandhya April 21, 2017

    I have submitted 24Q Q4, but return continuously rejecting by e-fling and reason showing is Error- Invalid count of the PAN of Lender.

    reply
  6. Satish Th May 6, 2017

    There is only one house owner and I entered the pan and name of the landlord. But when trying to validate the returns it asking for name and pan of landlord2 is mandatory in column 37 of annexure 2. Kindly guide.

    reply
    • gautham May 17, 2017

      Not sure what is problem here is. Can you check if you have entered “2” under the PAN count column?

      reply
  7. Rohit May 9, 2017

    1. I have submitted from 24q for 4q, there was a correction under savings, but after making the corrections and when validating its showing the error as count of PAN of landlord and count of PAN of lender. Since, there is no excess of 1lakh rent and the row is filled as ‘N’ & there is no interest of house property and the row is filled as ‘N’.
    2. Where do v enter 80E in TDS_RPU

    reply
    • gautham May 17, 2017

      1. Not sure what the problem is. For “N” there should be no error regarding PAN count.

      2. 80E amount should be shown in the “Chapter VI-A” column in Form 24Q4 annexure II.

      reply
  8. Rajneesh Bansal May 17, 2017

    I am filling the correction return for Tan PTLP14892D. When I try to validate it through FVU it showing the message “T_FV_6071 Invalid value provided under ‘Count of PAN of the Landlord’ & T_FV_6081 Invalid value provided under ‘Count of PAN of the Lender” again and again. The option House rent allowance (whether aggregate rent exceeds to one lakh) is selected to “No”.

    reply
  9. SURINDER M GAUTAM May 21, 2017

    we r preparing etds return and there are employees who claimed interest from house building advances. here the lender is State Govt. and in return cloumn 43 if we put PANNOTAVBL there is error in validation,

    anybody help this

    reply
  10. vijay chaudhari May 29, 2017

    I am filling the correction return, When I try to validate it through FVU it showing the message “T_FV_6071 Invalid value provided under ‘Count of PAN of the Landlord’ & T_FV_6081 Invalid value provided under ‘Count of PAN of the Lender” again and again. The option House rent allowance (whether aggregate rent exceeds to one lakh) is selected to “No”.

    reply
    • sathya June 12, 2017

      me too getting the same error…

      reply
  11. salimma sebastian June 4, 2017

    I am filling the correction return, When I try to validate it through FVU it showing the message “T_FV_6081 Invalid value provided under ‘Count of PAN of the Lender”.Whether interest paid to the lender the head income from house property -column42″NO”please help……..what can I do?

    reply
  12. salimma sebastian June 7, 2017

    I am filling the correction return, When I try to validate it through FVU it showing the message “T_FV_6081 Invalid value provided under ‘Count of PAN of the Lender”.Whether interest paid to the lender the head income from house property -column42″NO”please help……..what can I do?
    reply Definitely not permanent solution,Do not give me no reply………………………..

    reply
  13. Niyas June 9, 2017

    I am filling the correction return, When I try to validate it through FVU it showing the message “T_FV_6071 Invalid value provided under ‘Count of PAN of the Landlord’ & T_FV_6081 Invalid value provided under ‘Count of PAN of the Lender” again and again. The option House rent allowance (whether aggregate rent exceeds to one lakh) is selected to “No”.
    Anybody can help me with this issue?

    reply

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