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PAN number on rent reciepts

Thomas Cruz (Personal) (28 Points)

19 February 2009

I'm residing in Gurgaon and paying rent of Rs 18000 per month and showing the same for tax purposes.

The finance guy in my company said that for any Rent Reciept above 10,000 it is necessary to get landlord's PAN number.

Is it true that we need to provide PAN number on rent reciept ?

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2 Replies

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consult) (403 Points)
Replied 19 February 2009

The Income Tax is deductible if anybody pays the rent in excess of Rs.1,20,000/- p.a.. However, the TDS is deductable when your accounts are required to be audited u/s 44AB (i.e. crossing of annual turnover of Rs. 40 lakhs in case of business and Rs. 10 lakhs in case of professional).

While deducting the TDS, the PAN Number of the payee is required for issue of TDS certificate and filing of TDS return (if accounts are required to be audited).

In your case, there is no need of TDS and no need to obtain the PAN Number/PAN card copy.

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 19 February 2009

Mr Thomas

Your query is common among many people. As far as concerned TDS on rent u/s194I , this section is not applicable on individual. And the guy who told u abt PAN no. is something is not logical.

Tell him that PAN no, is not required on rent receipts becoz Income tax act doesn't require any such things mandatory.