Hra exemption

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ROHIT PATEL (Querist)
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30 October 2013 pls let me know about latest ammendment for HRA exemption if i pay HRA Rs.10000/- it is compulsory to give pan number of owner of the property pls advice us

CA Pallav Singhania

CA Pallav Singhania (Expert)
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30 October 2013 This news may disappoint many employees who all have been staying in rented house and claiming HRA (House Rent Allowance) under section 10(13A), need to furnish PAN of their landlords if rent paid by them is above Rs. 1,00,000 in a year.

In a recent circular from Central Board of Direct Taxes (CBDT) NO 08 2013 F No 275 192 2013 IT B; 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.

This rule is going to be a tough situation for those employees whose landlords are reluctant in sharing their PAN, also for those who all have just been claiming HRA without even paying any rents.

It has been decided as an administrative measure that salaried employees drawing HRA upto Rs. 3,000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of TDS (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.

Ganeshbabu K

Ganeshbabu K (Expert)
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30 October 2013 As per Circular no.8/2013.F.No.275/192/2013-IT(B)dated 10.10.2013

if you are claiming hra and showing annual rent paid is 1 lakh or more, you need to provide your landlord pan number
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for more refer
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Circular no.8/2013.F.No.275/192/2013-IT(B)dated 10.10.2013

Read more at: https://www.caclubindia.com/forum/pan-of-landlord-is-mandatory-to-claim-hra-267874.asp#.UnDJaPmnqQA

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