Finance blogLegal & Taxation

Do you need your bank PAN to get the home loan benefit?

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Do you need your bank PAN to get the home loan benefit?

There is now a need to reveal the PAN (permanent account number) for almost all major financial dealings. However, many people are unaware of the need to quote the PAN of their bank in order to get specific tax benefits on their home loans. Alongside, finding the right PAN of the bank in question may also be difficult.

Being a salaried individual, if you have already taken a home loan and are seeking tax benefits on the interest and principal components repaid annually, you will have to furnish particular details about the home loan including the name of the lender, loan disbursement date and so on to your employer. Additionally, the PAN of the lender has to be provided as well.

As per Rule 26C of the Income Tax Act, it is mandatory from the 1st of June, 2016, for employees to provide particular details to employers for claiming tax benefits on salary income. Employees have to fill and submit the Form 12BB to employers for claiming these tax benefits/rebate on their expenses and investments.

The Form 12BB is essentially a claims statement by employees for getting tax deductions on house rent allowance (HRA), LTA (leave travel allowance), interest paid on home loans and deductions under the Chapter VIA (Section 80C, 80D and so on). Among the other things to be mentioned in the Form 12BB, one has to submit particular details of the home loan:

  • Name of the Lender
  • Interest payable/paid to the lender for the financial year
  • Address of the lender
  • PAN (Permanent Account Number) of the lender

You have to locate the PAN of your lender and then furnish the same for getting tax benefits on your home loan. This is something that many people were unaware of earlier.

 

 

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