Rule 205: Evidence of salary deduction claims in Form 124
Rule 205 tells an employee what evidence or particulars to give the employer, in Form No. 124, so that the employer can estimate income and compute salary TDS. The Table covers four claims: house rent allowance, leave travel concession or assistance, interest under "Income from house property", and deductions under Chapter VIII. For rent above ₹100000 in the tax year, the landlord's PAN is required.
Official notified Income-tax Rules, 2026Need advice on Rule 205?
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Bare law
Rule 205 - Furnishing of evidence of claims by employee under section 392(5)(b) for deduction of tax from income under head “Salaries”
(1) The assessee shall furnish to the person responsible for making payment under section 392(1), the evidence or the particulars of the claims referred to in sub-rule (2) in Form No. 124, for the purpose of estimating his income or for computing the tax required to be deducted at source.
(2) In respect of the claim specified in column B of the following Table, the assessee shall furnish the evidence or the particulars specified in column C thereof:
Table Sl. No. Nature of claims Evidence or particulars A B C 1 House rent allowance. Name, address and Permanent Account Number of the landlord or landlords, where the aggregate rent paid during the tax year exceeds ₹ 100000 and relationship with the landlord, if any. 2 Leave travel concession or assistance. Evidence of expenditure. 3 Deduction of interest under the head "Income from house property". Name, address and Permanent Account Number of the lender. 4 Deduction under Chapter VIII. Evidence of investment or expenditure.
Rule breakdown
What the rule requires
The employee must furnish to the person responsible for paying salary under section 392(1) the evidence or particulars of the claims listed in the Table, in Form No. 124. The employer uses them to estimate the employee's income or compute the tax to be deducted.
This implements section 392(5)(b) of the Act, under which the employer must obtain evidence or proof or particulars of prescribed claims in the prescribed form and manner.
Evidence for each claim
House rent allowance: the name, address and PAN of the landlord or landlords where aggregate rent paid in the tax year exceeds ₹100000, and the relationship with the landlord, if any.
Leave travel concession or assistance: evidence of expenditure.
Interest under the head "Income from house property": the name, address and PAN of the lender.
Deductions under Chapter VIII: evidence of investment or expenditure.
Key takeaways
Form No. 124
All four kinds of claim are furnished in Form No. 124.
Landlord PAN above ₹100000
Required where aggregate rent in the tax year exceeds ₹100000.
Lender details for home-loan interest
Name, address and PAN of the lender.
Practical checklist
- Collect the landlord's PAN early if your rent for the year may exceed ₹100000.
- Keep receipts for leave travel expenditure and Chapter VIII investments or expenditure.
- Disclose any relationship with the landlord.
Avoid
- Do not leave out the lender's PAN when claiming home-loan interest.
- Do not expect the employer to allow a claim without the evidence or particulars listed in the Table.
FAQs
When must I give my landlord's PAN?
Where the aggregate rent paid during the tax year exceeds ₹100000, under row 1 of the Table in Rule 205(2).
Do I need to disclose my relationship with the landlord?
Yes, row 1 asks for the relationship with the landlord, if any.
What evidence is needed for home-loan interest?
Name, address and Permanent Account Number of the lender.
Which form is used?
Form No. 124.
Glossary
- Form No. 124
- Form for evidence or particulars of claims for salary TDS.
- Chapter VIII
- The chapter of the Act containing deductions, for which evidence of investment or expenditure is required.