Dear all,
First of all, a great thanks to the auto search plugin that helps to know if a similar thread has been posted.
My question is as below.
As per the new circular from the Central Board of Direct Taxes (CBDT) on 10 October 2013, if the annual rent paid by an employee exceeds Rs. 1 lakh per annum, it is mandatory for the employee to report the PAN of the landlord to the employer. I am in Kerala and paying a rent of only 7600/- per month, which comes to Rs. 91,200/- annually. So as per the circular, I understand, it's not mandatory for me to give the landlord's PAN number. However, the accounts department of my office has asked me to furnish the PAN card number of the landlord and told me that it is a must irrespective of whether the amount exceeds 1 lakh or not. They are saying that this update came as a different circular, later on and this was informed by the audit office to them.
I would like to confirm if this is true. Is there any other circular with regard to HRA for IT exemption from CBDT?
I did get many links on this topic, https://www.citehr.com/74500-landlords-pan-mandatory-rent-receipts.html and https://www.citehr.com/476590-cbdt-circular-hra-claim-pan-landlord-must.html are a few of them. But none of them explains as to what happens if the annual rent is below 1 lakh.
From India, Mumbai
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1First of all, a great thanks to the auto search plugin that helps to know if a similar thread has been posted.
My question is as below.
As per the new circular from the Central Board of Direct Taxes (CBDT) on 10 October 2013, if the annual rent paid by an employee exceeds Rs. 1 lakh per annum, it is mandatory for the employee to report the PAN of the landlord to the employer. I am in Kerala and paying a rent of only 7600/- per month, which comes to Rs. 91,200/- annually. So as per the circular, I understand, it's not mandatory for me to give the landlord's PAN number. However, the accounts department of my office has asked me to furnish the PAN card number of the landlord and told me that it is a must irrespective of whether the amount exceeds 1 lakh or not. They are saying that this update came as a different circular, later on and this was informed by the audit office to them.
I would like to confirm if this is true. Is there any other circular with regard to HRA for IT exemption from CBDT?
I did get many links on this topic, https://www.citehr.com/74500-landlords-pan-mandatory-rent-receipts.html and https://www.citehr.com/476590-cbdt-circular-hra-claim-pan-landlord-must.html are a few of them. But none of them explains as to what happens if the annual rent is below 1 lakh.
From India, Mumbai
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If the rent exceeds 1L only, the PAN is mandatory. Your Accts person may not be aware of this or he is harassing you. pon
From India, Lucknow
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From India, Lucknow
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Thanks a lot, Pon. I took a printout of the clause describing the details from the CBDT circular and also a thread on it from citehr. I approached the accountant, who in turn called the audit office and confirmed that the PAN card is needed ONLY if the annual rent exceeds 1 Lakh.
Thanks for the inputs.
From India, Mumbai
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Thanks for the inputs.
From India, Mumbai
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf