Is pan mandatory to furnish for landlord on rent agreement

If the rent payable for the year exceeds Rs. 180,000/-, you can deduct TDS u/s 194I at 10%. And while filing TDS returns, the landlord's PAN is required. And before all this, you need to have a TAN number to deduct TDS.

If rent paid subject to TDS deduction then u are required to furnish PAN to Landlord

@ mihir @ vishal @ gaurav

Suppose .. Someone(salaried person) staying by payment of rent to its landlord of Rs 35,000/- p.m. i,e Rs 4,20,000/- p.a. (which crosses the threshold limit of Rs 1,80,000/-)

here in the case employer is asking to his employee to furnish Pan card numder of its landlord but land lord is not willing to give ? is there anyone liable to anything in this case under income tax act ????? 

please guide

@ Ashutosh

First of all i would like to answer all of the 3 questions you have asked respectively:

1) Is there any threshold limit for individual tax payer ( Salaried Person) in case of Rent Payment ?

Ans : Already Answered above by Mihir i.e. Rs. 180000/-. All assessee are liable to deduct tax except individual and huf covered u/s 44AB (Audit). Therefore, Individual Tax Payer (Salaried Person) is not liable to deduct tax even if u are paying a rent of Rs. 240000/- p.a.

2) Is the above person liable at any time for its Landlord's tax liability in case of Rent payment?

Ans: Individual Salaried Person will never be liable for Landlord's tax liability at any time in case of Rent Payment.

3) Is the employer of that salaried person is liable at any time on this Rent Transaction or responsible to ask the Pancard details of its emplyee's Landlord ?

Ans: Employer of that salaried person is not liable to any time on this rent transaction. However if the rent payment is large or u can say that paying more than Rs. 180000/- p.a. than he may ask the employer to furnish the details of pan of Landlord in order to ensure himself that the employee is actually paying the rent. In case the landlord refused to submit so details than employee may furnish the declaration to his employer regarding the situation and the most important, the employee must pay the rent via Cheque or Bank Transfer so that employee can proof the rent payment to anybody i.e. employer, etc as the landlord is not submitting any details. It will serve as a proof of rent.

      So if landlord is not willing to give PAN Details, no body is liable in case of Individual Salaried Person. I suggest must pay rent via Cheque in order to serve proof in case of any dispute correspondings in future.      

Hi all,

You are requested to refer the  circular no 05/2011 dt 16 -8 -2011 issued by CBDT for TAX DEDUCTION FROM SALARIES UNDER SECTION 192 OF THE INCOME–TAX ACT, 1961DURING THE FINANCIAL YEAR 2011-2012 wherein it is told

" Further if annual rent paid by the employee exceeds Rs 1,80,000 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."

Hope it clarifies

Great response @ Rahul

Great as well Indeed refferred a valuebale circular @ Manish

Thanks 4 participation