Hra component for salaried employee and pan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 Hi,

This is regarding the furnishing of PAN details of the house owner in case the rent paid is grater than 15,000 per month.

What happens in case of a shared accommodation. For example if i share my flat with a friend and we together pay a rent of 22000. There is a single rent agreement stating the rent as 22000. However, individually we are paying 11000 per head, which is below the limit of 15000. In this case, is the PAN of the landlord required to be furnished.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 August 2012 As per CIRCULAR NO. 05/2011 clause no. 5.2.9 -
If annual rent paid by the employee exceeds Rs 1,80,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.
Accoringly, PAN of owner is required only if the payment made by the employee is in excess of Rs.180,0000pa.
Thanks.

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 However what happens in the case the rent is being shared by two people as described in the case above where the individual rents are below 1,80,000 for each.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 August 2012 In case the single Rent Agreement is in joint names
(whether it is so....not clear from your statement)
, the "agreement value" exceeds Rs. 180000/-. The purpose and intention of the law for providing TDS No of the land lord is to bring him in the tax-net. So, once you produce such agreement, it becomes the joint responsibility of the co-tenants to provide the PAN No of the land lord.
.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 August 2012 Circular uses the word rent paid by the employee and it does not says that agreement value should exceed Rs. 15000 pm.
Accordingly, you can get the benefit of HRA even if the total amount as per agreement exceeds Rs, 15000.