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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2017 is this true If the rent paid is less than Rs. 3,000 per month you need not submit any proof. But if the rent is more than Rs 3,000 you need to submit rent receipt / rent agreement to your employer.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 January 2017
It has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month
will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the
purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry
as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.
Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of
the landlord to the employer. 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.

Courtesy:- CBDT CIRCULR 1/2017 dated 2-1-2017.

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