24 December 2013
Companies/employers are asking for pan card copy of owner of house property let out to their employee to give HRA exemption to their employees along with the submission of rental receipts and rental agreement.
what is the need for taking pan card of the owner of the house property by the employer??
does it have any tax implication on the owner of the property??
is it only to act as a check on fictitious rental receipts created by the employees??
It is required by Income Tax (refer Not. 8/2013) when rent paid in a FY ir Rs. 1 lac or more. Main reason for collecting PAN no is to curb fictitious transactions.
CAclubindia
