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PAN required if annual rent paid exceeds Rs.100,000

PAN required if annual rent paid exceeds Rs.100,000:

It is with reference to Section 10(13A) of the Indian Income Tax Act where salaried individual getting HRA is entitled for tax exemption, if house rent receipts are produced. If any employee pays monthly rent above Rs.8,333 per month then it is mandatory to furnish Permanent Account Number (PAN) of your landlord to the employer. Earlier it was required to be furnished if monthly rent was more than Rs.15000 per month.

As per the Circular No. 08/2013, dated 05-October-2013 issued by Central Board of Direct Taxes (CBDT), if annual rent paid by an employee is more than Rs.100,000 per annum, in that case the employee has to furnish PAN of the landlord to the Employer. However, for administrative ease, if an employee is drawing HRA up to Rs.3,000 per month then the employee is exempted from production of rent receipt.

Landlord doesn’t have PAN:

Employee has to make a declaration giving details of name and address of the landlord. Read full article on What to do if the Landlord doesn’t have PAN?

Check the law post the Circular No. 08/2013:

Case I – HRA drawn up to Rs.3,000 per month:

No rent receipt required. No landlord PAN required.

Case II – HRA drawn above Rs.3,000 per month and rent paid up to Rs.100,000 per annum:

Furnish rent receipt to employer. No landlord PAN required.

Case II – Rent paid above Rs.100,000 per annum:

Furnish rent receipt and landlord PAN to your employer.

Read Article on “What to do if the Landlord doesn’t have PAN?

Do you know your PAN? Keep on reading to know some important facts about it. Read…

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