Landlord pan mandatory for hra exemption above 15000/-

Notification 22043 views 15 replies

Priyanka

82 Points Joined February 2009

Landlord Pan mandatory for HRA exemption above 15000/- Rs

According to the notification issued by the Income tax department, now landlord PAN card is must to get tax exemption against HRA allowance. One will have to submit PAN card as a proof if he is applying for more than 15,000 Rs. as monthly rent which means from now on, he needs to submit original rent receipts as proof of rent as well as PAN card copy of the landlord to get the tax exemption on HRA.

Earlier only rent receipt was required to get the tax exemption but as per the latest notification from Income Tax Department, now one has to submit the PAN details of the landlord. This is mainly due to the increase in the no. of people who are producing false receipts to get the tax exemption.

In the case, if the landlord doesn’t own a PAN card, he must sign the self-declaration saying that he doesn’t have the PAN card and that copy must be submitted to the employer to get the HRA exemption.

source: https://www.simpletaxindia.net/2011/12/landlord-pan-mandatory-for-hra.html

Has anybody seen the notification reference for the above? If yes, please share.

Replies (15)

@CS Siddharth Bumb.

B.Com CA Final CS

5270 Points Joined September 2009

THANK YOU .... KEEP SHARING VALUABLE THINGS...

* Krishna *

CA Student

6149 Points Joined March 2009

@ Priyanka

Official release of CBDT file is given in below link. Refer Page 24.

https://www.bbspl.com/download/webpay/CirNo5Section192.pdf

Guest

Yes... its already implement in my company...

CA Kiran Sutrave

428 Points Joined March 2007

It is mandatory for employees to report PAN of landlord to their employers but it is nowhere written that if PAN is not provided or self declaration is not submitted to the employer then exemption is to be denied by the employer at the time of TDS calculation done by the them.

Correct me if I am wrong in interpreting the Circular.

ROSHAN BHARTIA

ACCOUNTANT AND CA ARTICLE

2250 Points Joined July 2011

ITS SHOULD BE GOOD IMPLEMENTATION THERE IS NO CHANCE OF FRAUD

srinivass

CA Final

2466 Points Joined December 2010

tHANKS FOR SHARING BUT IS IT NOTIFICATION COME FROM iNCOMTAX INDIA GOV.IN........IF

YES PLZ PROVIDE THE LINK FOR THE SAME

* Krishna *

CA Student

6149 Points Joined March 2009

@ Srinivas:

For your reference, the official link in IT website is given below. Refer Circular No.5/2011 dated 16-8-2011. Try to open the file in internet explorer with adobe reader installed.

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

Priyanka

82 Points Joined February 2009

Thanks everybody for sharing further details.

Based on the circular and my first post I have a little querry about the amount of monthly rent (Rs.15000 per month as mentioned in my first post).

The relevant para under section 10(13A) reads

"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. "

https://law.incometaxindia.gov.in/DIT/Circulars.aspx (page 24)

https://www.bbspl.com/download/webpay/CirNo5Section192.pdf (page 24)

Now suppose rent structure for the year is as follows

April to July -----13500*4 = 54000 (Landlord 1)

Aug to March--- 16000*8 =128000 (Landlord 2)

Thus total rent paid during the year is Rs.182000.

Here

1)The rent per month doesnot exceed Rs.15000 (April-July)

2)Total annual rent exceeds Rs.180000

Now the question is -- does the employee needs to report PAN details of both the landlords?

Also clarify if there is any mistake in interpretation.

Maneesh Kumar

B.Com M.Com STUDENT CWA IPCC

507 Points Joined March 2010

100% TRUE.

Maneesh Kumar

B.Com M.Com STUDENT CWA IPCC

507 Points Joined March 2010

100 % TRUE.

* Krishna *

CA Student

6149 Points Joined March 2009

Your annual rent exceeded 180,000 (monthly rent to my view is not considered). Hence in my opinion, PAN of the new landlord needs to be submitted. Let others comment.

ajay

advocate

211 Points Joined February 2010

Originally posted by : Priyanka

hi, as per my
Thanks everybody for sharing further details.

Based on the circular and my first post I have a little querry about the amount of monthly rent (Rs.15000 per month as mentioned in my first post).

The relevant para under section 10(13A) reads

"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. "

https://law.incometaxindia.gov.in/DIT/Circulars.aspx (page 24)

https://www.bbspl.com/download/webpay/CirNo5Section192.pdf (page 24)

Now suppose rent structure for the year is as follows

April to July -----13500*4 = 54000 (Landlord 1)

Aug to March--- 16000*8 =128000 (Landlord 2)

Thus total rent paid during the year is Rs. 182000.

Here

1)The rent per month doesnot exceed Rs. 15000 (April-July)

2)Total annual rent exceeds Rs. 180000

Now the question is -- does the employee needs to report PAN details of both the landlords?

Also clarify if there is any mistake in interpretation.

hi, thanks for your kind informations.

now on this matter according to my interpretation an" amount of rent paid anually 180000 " clearly suggests that only HRA of the above mentioned amount paid as rent is to be considered even though it may be paid to more than one landlord ,...thus this notification applies to the rent recieving person as such PAN of both the landlord is to be provided.