HRA - Help Needed

The way it started I thought this was a Quant question. Find x.

This is illegal. Don't do it.

I see a trend in freshers/early professionals here on GV constantly in search to game the tax system 😂 Bhai log, hum itne saal se tax de rahe hai, matlab hum woh nahi hai. Don’t play with the system, it can hit back badly. Specific to the question asked by OP here - 17x is the limit upto which u will get tax exemption. If it’s less let it be, you will still get the differential money after paying tax on it. If you try to game the system and annual rent > 1L, PAN/slips are required. Your PG owner won’t take extra liability to save yours.

Please stop watching “tax hack reels”, all those creators aren’t even aware of liabilities. Test them by try asking them the questions.

Afaik the landlord's pan card also needs to be submitted for hra claim. So govt. can cross check at the back end. So even if it's not caught right away, 2-3 years down the line you might get caught and will have to pay a hefty fine

If you are giving owner pan number, the rent that you declare to the company is going to be submitted to the ITD against your owner PAN. When the owner is going to file his returns, his CA will find it and the Owner may ask you to give him the income tax he has to pay extra.

It will give trouble to u too and the tax filing will not match and amount deducted from ur account will be less than what u claimed and then u have to pay heavy penalty, not to say it will open up more things in ur ITR filing for anything like LTA etc which u have claimed falsely, it will create major mess for u. Right from CA to IT officer everyone will demand money to settle things and the amount u have to shed will be immense

If you show an extra amount for hra for tax saving then the landlord is expected to pay tax on that extra amount. If he doesn't then you both will get a notice down the line.