16 December 2008
At beginning of year, Employer may ask Employee to submit copy of Rental Agreement. If Agreement has not been entered into, the Employee should be required to submit a letter signed by Landlord indicating the monthly amount of rent. In any case full and clear address including Door No, Street No and the like should be insisted. Also insist on PAN copy of Landlord. If he did not obtain PAN, he should make a mention of the same in the Letter.
At fag end of year, require the Employee to produce receipts. These can be seperate or in a consoldiated form.
Finally, you should be in a position to satisfy the Dept, if ever a question arises, that you have taken all reasonable steps to satisfy yourself about genuniness of rent payments claimed by employees
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