SGSRI (Employee) (40 Points)
13 December 2013Dear Seniors,
If One employee is not providing his landlord's PAN number as well as No PAN declaration, and actual rent paid by him is above 1 lakh, what needs to be done ?
Since this is NO PAN / NO Declaration submitted case, simply take into tax Or, can consider/treat 1 lakh as his actual rent and calculate his tax accordingly??
Please suggest.
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH)
(1372 Points)
Replied 13 December 2013
First of all,this is not a case of H.R.A.Furthur no T.D.S on H.R.A and this is profits in lieu of salary to employee. Generally rental agreement is between employee and Landlord and employer may pay rent directly to land lord.The nature of expenditure to Company is salary and to employee is rent.So liability to deduct T.D.S will be on employee if he has a business and turnover exceed limits specified under section 44AB.Furthur liability to deduct T.D.S will be in case where rent paid exceed rs180000,so no need to deduct T.D.S
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