Rent monthly - rs. 10000/-

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Philip (Querist)
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28 December 2012

Dear All,

If monthly rent exceeds Rs. 10000/-landlord PAN is required for IT purpose

Is it correct

regards,
Philip J.

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2012 Hi

As per IT rules PAN required if annual payment of rent exceeds Rs. 2 lacs.

Thanks!!

Anand

Anand (Expert)
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28 December 2012 Philip, you are required to deduct TDS only when the payment of rent exceeds Rs. 1,80,000/- in a financial year. (194-I)

In this case, total rent does not exceed Rs. 1,80,000/- and hence there is no requirement for TDS

Since there is no requirement for TDS you may not insist on obtaining the landlords PAN for TDS or Income Tax Purpose.

Anand

Anand (Expert)
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28 December 2012 Vaibhav, the threshold limit for Section 194-I is Rs. 1.80 Lakhs and not Rs. 2 Lakhs.

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2012 @Anand, i am not mentioning about 194 I limits.

I hope question here is asked is not related to 194I.

thanks!!

Anand

Anand (Expert)
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28 December 2012 I believe the requirement of PAN of landlord would arise at the time of TDS deduction.
Correct me if am wrong, but there is otherwise no requirement under Income Tax Act, to obtain PAN of the landlord.

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2012 Hi

Even when an employee is staying in rented property & claiming HRA exemption wrt to same, then he has to also submit PAN of landlord to his employer, if rent paid by him is more than 2 lac p.a.

Thanks!!

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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28 December 2012 Looking Towards The Query, Its Clear That Query is Asked for 194I Limit,
Though Only Author Can Confirm That,
and Rest Agree With Above Both Experts Replies.

Regards,

Message likes : 1 times

Anand

Anand (Expert)
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28 December 2012 Vaibhav, I stand corrected on this issue
Either ways no PAN is required either under 10(13A) or 194-I if rent payment is Rs. 10,000/-

Since Philip has not clarified what he means by IT Purpose I will modify the answer as under

a) If you are an employee who is paying rent to a landlord exceeding Rs. 2,00,000/- in a financial year then landord PAN is a must. If landlord does not have PAN a declaration from landlord with his name & address should be filed with employer. (Circular no.8/2012)

b) If you are a deductor of TDS, then PAN is required if the rent payment exceeds Rs. 1,80,000/-. if landlord does not have PAN then you will have to deduct TDS u/s 206AA.@ 20%

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Philip

Philip (Querist)
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28 December 2012 I am asking about the employee who is payint rent

now it is clarified that if rent payment exceeds Rs. 200000/- requires PAN of Landlord

thanks
Philip J.

Message likes : 1 times

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2012 Dear Anand,

Agreed with you. You have explained very well.

Thanks for feedback.

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