Rent 15kpm or 1.8Lpa Pan mandatory

POSTED BY Ravi Chandra M ON August 24, 2013 5:03 pm COMMENTS (6)

Hello JI,

My query is regarding HRA. My owner does not have PAN number (or probably doesnt want to disclose for IT sake).

I have read on interenet that PAN is mandatory for rent above 15kpm or 1.8Lpa.

I am working only nine months in this financial year, paying rent of 20kpm. In my case, What happen in the cases where rent is above 15kpm but just 1.8lpa in a financial year?. Would I still require PAN number of my owner for HRA exemption purpose?. One of the suggestion I have received from my friend is to quote rent of 14.5kpm  (eventhough I am paying more than that) so that I dont have to produce PAN number.

Your help will be greatly appreciataed.Pointers to the authoritative articles (like IT dept. HRA policy or so) which can be produced to accounts departments in office will be more respected.

6 replies on this article “Rent 15kpm or 1.8Lpa Pan mandatory”

  1. Muthu Krishnan V says:

    This limit is applicable only for those filing returns OTHER THAN INDIVIDUALS AND HUF. If you are neither an individual tax-payer or huf, only the deduction is applicable.

  2. Ravi Chandra M says:

    Dear Ashal,

    The rent paid by me in this financial year is not exceeding 1.8L but exceeding 15kpm, because I am paying rent of 20kpm for nine months.

    So should I be producing PAN of the owner?

  3. Dear Ravi, if annual rent to be paid by you is more than 1.8L Rs. you are liable to deduct TDS.

    thanks

    Ashal

  4. Ravi Chandra M says:

    he he.. like TDS for me. I probably will threaten him so 😉 let see.

    However my question still is alive!. I mean is there a monthly restriction on rent or its just 1.8lpa?. I mean lets say i lease a villa of big film star for one month at 1.5lpa is it still ok or only 15kpm?. Should i be disclosing pan number in which cases?

  5. Dear Ravi, it’s your owner’s problem. You should deduct Tax on his rental income & deposit the same into Govt. account.

    thanks

    Ashal

    1. Ashish Garg says:

      Dear Ashal,

      Just wanted to understand that if Ravi deducts the TDS, where in whose account should he pay the taxes? Since he do not know the PAN of his landlord, how the taxes would be paid to Govt.?

      Ashish

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