When claiming tax benefits on your home loan, it’s crucial to provide accurate information, including the bank or financial institution’s PAN number. This number is essential for the Income Tax Department to track your deductions and verify your claim under sections like Section 80C and Section 24(b). If you have taken a home loan from HDFC, knowing the bank’s PAN number is necessary to simplify the tax filing process. This guide provides the HDFC home loan PAN number and explains its significance.
What is a PAN number and what is its role in home loans?
A PAN (Permanent Account Number) is a unique 10-character alphanumeric code issued by the Income Tax Department of India. It is a critical identifier for individuals, businesses, and financial institutions in various financial transactions, including tax filing, investments, and loan-related activities.
PAN in the context of banks
Just like individuals, companies, and financial institutions—including banks—have their own PAN numbers. HDFC Ltd., which issues home loans, also has a PAN allotted by the Income Tax Department. This PAN is often required for regulatory and tax purposes.
Regarding home loans, a PAN number is crucial in ensuring transparency and accuracy in tax-related matters. Borrowers can claim tax benefits on the principal and interest repayments under Section 80C and Section 24(b) of the Income Tax Act. To facilitate this process, providing the PAN number of the bank or financial institution issuing the home loan is essential for several reasons:
- Tax Verification: The bank’s PAN number helps the Income Tax Department verify the home loan deductions borrowers claim. This ensures that only genuine claims are processed and reduces the risk of fraudulent claims.
- Form 26AS Reconciliation: PAN numbers are linked to Form 26AS, a tax credit statement reflecting all tax-related transactions. When the bank’s PAN is included, it allows for seamless reconciliation of tax deductions, making tax filing easier for borrowers.
- Accurate Tax Filing: Providing the correct PAN number ensures borrowers can avoid discrepancies or errors in their tax returns. Missing or incorrect PAN details could lead to delays in tax refunds or rejection of deductions.
- Compliance and Transparency: In today’s digital age, PAN is vital for financial accountability. It links financial transactions to a common identifier, promoting transparency and accountability across the system.
Relevance in home loans
Whenever you claim a tax deduction on your home loan—under sections such as 80C (principal repayment) or 24(b) (interest payment)—the government needs to track which financial institution is involved in the transaction. To do this efficiently and ensure transparency, they require the PAN of your lender, i.e., HDFC.
Where can I find the home loan PAN number?
You can find the PAN number of your bank or financial institution in the home loan interest certificate.
HDFC home loan PAN number
An individual does not need to provide the PAN number of the institution or bank that issued the home loan to claim an exemption for house loans. The PAN number of HDFC is:
| Name | Housing Development Finance Corporation Limited (HDFC Ltd.) |
| PAN | AAACH0997E |
This PAN is universal for all home loans issued by HDFC Ltd. across India, whether your loan branch is in Mumbai, Delhi, Bengaluru, or any other city.
Why do you require each bank’s PAN number?
Common scenarios where HDFC PAN number is needed
Scenario 1: Claiming tax benefits as a salaried employee
You have a running home loan from HDFC and want your employer to consider your home loan deductions for TDS calculation. You submit Form 12BB and attach the HDFC interest certificate, ensuring the HDFC PAN is mentioned.
Scenario 2: Self-employed or multiple employers
You need to manually claim the home loan deduction in your ITR. The form will require the HDFC PAN for accurate reporting.
Scenario 3: Joint borrowers
Both husband and wife are co-borrowers, sharing the home loan. Each claims their share of deduction and mentions HDFC’s PAN in their respective filings.
Scenario 4: Compliance checks
Sometimes, if there is a mismatch or scrutiny by the tax department, you may be asked to submit lender details. The HDFC PAN becomes crucial for these queries.
Where do you need to quote the HDFC PAN number?
1. For income tax declaration to employer
Most salaried employees must submit Form 12BB to their employer as a declaration of their tax-saving investments. If you are claiming a deduction for home loan interest/principal paid to HDFC, you must fill in HDFC’s PAN number in the relevant section.
2. When filing income tax returns (ITR)
When filing your ITR online or offline, you may be prompted to enter your lender’s PAN number. This step is especially relevant if you are self-employed, a freelancer, or have switched jobs during the financial year.
3. For joint home loans
In case of joint home loans, each co-borrower must provide the HDFC PAN number while claiming their share of the deduction.
4. For form 26AS reconciliation
Form 26AS is your annual tax statement, reflecting all the TDS and high-value transactions in your PAN. The home loan interest/principal repayments made to HDFC will be reported if the PAN is correctly quoted.
5. For home loan tax benefit documents
Whenever you seek a home loan interest certificate or principal repayment certificate from HDFC, these documents will typically mention HDFC’s PAN number. You’ll attach these while claiming deductions.
Step-by-Step: How to find and use the HDFC PAN number
1. Locating the PAN number
- On HDFC’s home loan interest certificate: Each year, HDFC issues this certificate for your loan account. The lender’s PAN (AAACH0997E) is printed on it.
- Official HDFC website: Under “Disclosures,” or in FAQs regarding tax benefits.
- Contacting customer care: If in doubt, you can call HDFC Home Loans customer service or visit your loan branch.
- Income tax department’s list: On the official portal, you can verify HDFC’s PAN using the “Verify PAN” feature for corporate entities.
2. How to fill in HDFC PAN number in tax forms
- Form 12BB: There’s a section titled “Details of interest paid on housing loan.” Enter HDFC Ltd. as the lender, and fill “AAACH0997E” in the column for lender’s PAN.
- ITR Forms: In ITR-1/2/3, when prompted for lender’s details, fill in the PAN correctly.
Documentation: Attach a copy of the interest certificate where PAN is already mentioned.
Role of PAN number in tax filing for home loans
The bank’s PAN number plays an essential role when you claim tax deductions on your home loan under sections 80C and 24(b) of the Income Tax Act. This number helps the Income Tax Department track and verify the deductions claimed by borrowers. The tax authorities ensure transparency and prevent fraudulent claims by linking your home loan interest and principal repayments with the bank’s PAN.
For borrowers, providing the PAN number of the bank or financial institution simplifies the tax filing process. It ensures that the tax benefits on your home loan are accurately reflected in your Form 26AS. Additionally, the PAN number helps establish a straightforward financial transaction record, which can be critical for future audits or verifications.
Connection to section 80C and section 24(b)
When claiming tax benefits on home loans, it is essential to understand how sections 80C and 24(b) of the Income Tax Act apply. These sections provide significant tax relief on both the principal and interest components of your loan repayment.
- Section 80C: You can claim a deduction of up to ₹1.5 lakh on the principal amount repaid during the financial year. This deduction reduces your taxable income and helps you save on taxes.
- Section 24(b): This section allows you to claim a deduction of up to ₹2 lakh on the interest paid on your home loan in a financial year. This benefit applies only if the property is self-occupied. For rented properties, there is no upper limit on the interest deduction.
What happens if you enter the wrong PAN?
Consequences of incorrect PAN entry
- Tax benefit rejection: Your claim may be rejected or disallowed during scrutiny.
- Mismatch in form 26AS: Your deduction may not reflect correctly in the tax portal.
- Employer query: Your company may reject your declaration if PAN is missing or incorrect.
- Notice from IT department: In rare cases, you may get a notice for incorrect claims if the lender details don’t match official records.
How to correct mistakes
- Re-submit form 12BB: To your employer with correct PAN.
- Revise ITR: If you notice the error after filing your return, file a revised return with the correct details.
When PAN is not needed for home loan tax benefits?
Providing the bank’s PAN number may not be necessary in certain situations while claiming home loan tax deductions. This primarily depends on how the tax deduction details are reported.
If your home loan interest and principal repayment details are already reflected in Form 26AS, you are not required to enter the bank’s PAN number separately during tax filing. Form 26AS is an annual tax credit statement that records all tax-related transactions, including home loan deductions, if reported by the bank.
Additionally, if your employer directly collects the required documents (home loan interest certificate and principal repayment details) and adjusts your taxable income accordingly, you may not need to provide the bank’s PAN at the time of individual filing.
HDFC PAN for other purposes
Not just for tax
- Large transactions: For high-value repayments, property sales, or bulk transfers, banks may ask for their PAN for compliance.
- NRI customers: NRI borrowers also need to use HDFC’s PAN when claiming tax benefits on home loans taken from India.
Housing.com POV
Understanding and correctly quoting the HDFC Home Loan PAN number (AAACH0997E) is essential for every home loan borrower who wishes to maximize their tax savings and stay fully compliant with Indian income tax laws. This single step ensures your home loan tax benefits are processed without delay, prevents unwanted scrutiny, and provides a transparent trail for all your financial dealings. With evolving banking norms and periodic regulatory changes, being accurate with these details remains as important as ever for homeowners in India.
FAQs
What is the PAN Number of HDFC Bank?
The PAN number of HDFC Bank is AAACH997E.
What is the required credit score for HDFC Bank?
A credit score of 620 or higher is often required for HDFC Bank.
