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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