HRA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 Me & My hubby both are working in the same private company in Bangalore. We are sharing HRA 20000 & 10000. IS it compulsory to submit pan of owner? our owner is not ready to give pan no. shall we need to submit rent aggrement? All these are compulsory as per income tax department of India?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 February 2011 Beyond a certain limit, companies do insist on more evidence for rent payment, beyond the mere rent receipts.

The IT circular has bestowed the liability on the salary disbursement officer to ensure that he/she is allowing any IT benefits to any employee on the basis of legitimate proofs. So, its on the understanding & practice of the company, they need to safeguard themselves against any IT notice, as any point of time they need to explain & justify any deductions that are allowed to any employee.

So these PAN or rent agreements are part of these safeguards & appropriately justified.