Hra ammendment

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CH.Sarath (Querist)

24 December 2013 The recent amendment related to HRA,That employees paying Rent rs.100,000/- or more have to submitt PAN of land lord,my doubht is department is planning to Avoid Tax avasion or to target Landlords.

Mr.A (landlord) actually receiving rent of RS.250,000/- but shown in I.T only RS.100,000/-
Now MR. B the Tenant asking his PAN ,is Submitting Lanlords PAN is Safe...how can we Think this can anyone,expalin me?

Ganeshbabu K

Ganeshbabu K (Expert)

24 December 2013 Income tax Department recently released Circular no.8/2013.F.No.275/192/2013-IT(B)dated 10.10.2013

1)earlier the submission of PAN of landlord was mandatory if rent paid was 180000 per annum w.e.f financial year 2011-12 now the limit has been significantly reduced to one lakh only w.e.f . 2013-14

2)Yes, there will be a problem to landlord if he is supressing his income,..
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3)Actually This will be problem for many employees as landlord generally reluctant to provide PAN on rent receipt or otherwise to tenant.

Further as given above,Circular specified that in case landlord does not have PAN,employee can give declaration to this effect along with name and address of landlord to his/her employer.

Message likes : 1 times

Ganeshbabu K

Ganeshbabu K (Expert)

24 December 2013 1)Many people think that this is a mesure to unearth the unaccounted money?But Salary persons mostly beleives in paying tax correctly ,in fact they have no option as here tax is deducted on payment of salary.

2)Further there is no logic in fixing 100000 where as for last year it is rs.180000and rents also increasing day by day same as the inflation.

3)Businss man booking their expences as they wish where as same is not possible for Salary persons.

4)It would be better if Threshold limit under section 194I should also reduced to 100000 if CBDT wants to get any improvement with this circular ..
..
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CH.Sarath

CH.Sarath (Querist)

24 December 2013 Where can i found such Declaration format !!!

CH.Sarath

CH.Sarath (Querist)

24 December 2013 ganesh sir even if Landlord has PAN how can he allow his tenant who is employee to give Declaration? That he has no pan

ie,,Declaration is needed when there is no PAN, even if PAN is there can landlord allow for declaration is it safe?

Ganeshbabu K

Ganeshbabu K (Expert)

24 December 2013 just ask owner to give PAN number, if he refused to give

Just give name and address of owner to your employer ,,there is no format for declaration,,
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as far as owner is concerned it is the responsibility of owner to give PAN to tenant .he has to show true income to tax dept.

CH.Sarath

CH.Sarath (Querist)

24 December 2013 thank you sir
and this situation is not facing by me,,,sir :)

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