Salaried person who are living in Rented house and claiming HRA exemption under section 10(13A) of Income tax Act.
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Income tax Department recently released Circular no.8/2013.F.No.275/192/2013-IT(B)dated 10.10.2013
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Vide which it has been stated that an employee who is claiming HRA and if annual rent paid by the employee exceeds 100000per annum, it is mandatory for employee to report PAN of owner to employer.
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earlier the submission of PAN of landlord was mandatory if rent paid was 180000 per annum w.e.f financial year 2011-12 now the limit has been significantly reduced to one lakh only w.e.f . 2013-14
This will be problem for many employees as landlord generally reluctant to provide PAN on rent receipt or otherwise to tenant.
Further as given above,Circular specified that in case landlord does not have PAN,employee can give declaration to this effect along with name and address of landlord to his/her employer.
So all employees/employers should note down this ammendment and make sure the compliance of it while finalising the caluculation and deduction of tax on payment of salary.
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Whether this measure is correct or not ? Give your opinion:-
Many people think that this is a mesure to unearth the unaccounted money?But Salary persons mostly beleives in paying tax correctly ,in fact they have no option as here tax is deducted on payment of salary.
Further there is no logic in fixing 100000 where as for last year it is rs.180000and rents also increasing day by day same as the inflation.
Businss man booking their expences as they wish where as same is not possible for Salary persons.
It would be better if Threshold limit under section 194I should also reduced to 100000 if CBDT wants to get any improvement with this circular
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