HRA Exemption of Over Rs 8,333 a Month Will Need Landlord's PAN Number..


In an attempt to further tighten its grip around  income tax evaders, the Income Tax ( I - T) Department now wants tenants to produce their landlord's PAN for HRA (House Rent Allowance) exemptions of Rs. 1 lakh or more annually or /  Rs 8,333 monthly. This is a new circular issued by Central Board of Direct Taxes (CBDT).

Earlier, I - T Department asked taxpayers to produce a rent agreement or PAN card of the landlord if the monthly rent exceeded Rs. 15,000, or / Rs. 1.80 lakh annually.

The CBDT circular says that if a tenant is not able to produce his / her landlord's PAN Number, he / she must submit a declaration to this effect from the landlord along with the name & address of the landlord at the time of claiming HRA exemption.

I - Tax Department has raised a big cause for salaried taxpayers through this notice. The measure is aimed at salaried professionals who submit counterfeit tax receipts to evade tax payment.


Not all landlords are open to producing their PANs or even going through formalities of rent agreement or receipts.
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