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Bad News for Salaried Individuals!!!

Tax planning 4171 views 28 replies

Dear All,

 

There is Bad News coming for salaried Assessee, Now PAN became mandatory for All Employee to provide to employer of landlord to whom you are paying rent more than 100000/- per annum.

Earlier it was 180000/-, indirect way from TDS u/s 194I.

if one cant provide PAN then employee has to take a declaration from landlord that he don't have PAn  and same should be submitted to employer.

PFA Circular.


Attached File : 33834 1239625 income tax circular 08 2013.pdf downloaded: 1201 times
Replies (28)

thanks for the updateyes

Thanks bro for this update

Hi

 

This is good move by IT dept. to catch fake transaction!. Since through HRA max tax exemption s claimed by salaried employee.

 

One correction earlier limit was Rs. 2,00,000/-.

 

Thanks//VaibhavJ

 

 

thanks for d update yes

Thanks for the update...

Thanks. Information will have some reactions. 

Originally posted by : @ VaibhavJ

Hi
This is good move by IT dept. to catch fake transaction!. Since through HRA max tax exemption s claimed by salaried employee.
One correction earlier limit was Rs. 2,00,000/-.

Thanks//VaibhavJ

 

I dont think its good move, just to harrash salaried employees, businessman can take as many deduction as they want.

but for salaried, already there are limited deductions, first impracticle thing is most of the landlord wont give their PAN details/declarations., here no one will suffer other than employee only.

and regarding correction of 2 lakhs,

some author suggested

>Threashold Limit of 194I i.e. 1.8 lakhs

 & some author suggested basic exemption limit of rs. 2 lakhs.

 

but in income tax act, no where clearlly mentioned any limit.

Thanks for the update...

 

Thanx for useful info..

Dear Ayush

 

You can refer Circular No. 8/2012 under S/10(13) you will find that extract for Rs. 200,000/- rent pa. for PAN requirement of Landlord. There is no relation in S/194I & circular 8/2013.

 

Even i do agree with your view that many Landlord does not provide PAN card details however when it is law then everyone is obliged.

 

Thanks//VaibhavJ

Thanks for the update...

agree with Ayush...

 

Thankx For updating

 

Vaibhav,

 

Refer Circular 05/2011 Income tax india, for HRA

Link is This

https://caclubindia.s3.amazonaws.com/cdn/files0512/626532_43862_hra_circulation.pdf

Check page No. 24.

If after that any circular is there for amendment then pls let me know from income tax department  - that exceeding 2 lakhs only landlord need to provide PAN.

& i am telling that opinion may differ author to author, if you remember any circular mentioning 2 lakhs limits then its fine.

 

& regarding this limit changed option is there of Rs. 100000, its nothing but a circular, we will go to appeal, otherwise 194I limits also to be changed.

 

Originally posted by : CA AYUSH AGRAWAL

Vaibhav,

 

Refer Circular 05/2011 Income tax india, for HRA

Link is This

https://caclubindia.s3.amazonaws.com/cdn/files0512/626532_43862_hra_circulation.pdf

Check page No. 24.

If after that any circular is there for amendment then pls let me know from income tax department  - that exceeding 2 lakhs only landlord need to provide PAN.

& i am telling that opinion may differ author to author, if you remember any circular mentioning 2 lakhs limits then its fine.

 

& regarding this limit changed option is there of Rs. 100000, its nothing but a circular, we will go to appeal, otherwise 194I limits also to be changed.

 

Yes Ayush.

 

Circular no. 8/2012 has revised limit from 1.8 lac to 2 lac.

 

& which again got changed from 2 lacs to 1 Lac by this Cir. no.8/2013


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