Bad News for Salaried Individuals!!!

Page no : 2

Shikha (Student CA Final ) (37 Points)
Replied 15 October 2013

Is ther any specific format for Declaration by LandLord that He doesn't have PAN??

Also is it mandatory to submit Rent receipt from Landlord?? Does any1 have specific format for that? on stamp paper or plain paper??

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Devadas K S (One life one Dream) (3525 Points)
Replied 16 October 2013

Thanks for the update...

udaykiran (ipcc cs executive cma ) (325 Points)
Replied 16 October 2013

Thanx for ur update

Keshav Dutt Beetan (Deputy Manager) (32 Points)
Replied 16 October 2013

Originally posted by : CA AYUSH AGRAWAL

Originally posted by : @ VaibhavJ

Hi
This is good move by IT dept. to catch fake transaction!. Since through HRA max tax exemption s claimed by salaried employee.
One correction earlier limit was Rs. 2,00,000/-.

Thanks//VaibhavJ

I dont think its good move, just to harrash salaried employees, businessman can take as many deduction as they want.

but for salaried, already there are limited deductions, first impracticle thing is most of the landlord wont give their PAN details/declarations., here no one will suffer other than employee only.

and regarding correction of 2 lakhs,

some author suggested

>Threashold Limit of 194I i.e. 1.8 lakhs

& some author suggested basic exemption limit of rs. 2 lakhs.

but in income tax act, no where clearlly mentioned any limit.

You are Right Ayush, in case of Rent, Salaried Person required to provide PAN no. of Landlord for rent more than Rs. 1,80,000/- not Rs. 2,00,000/-. Because threshold limit for deducteing TDS on rent is Rs. 1,80,000/-.

Pls correct me if I m wrong.

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 16 October 2013

No effect on exemption. Employee will get same benefit which they were getting before.

Now they have to submit PAN no. of landlord too employees if their rent payment exceed Rs. 1 lac p.a.

Rent receipt is required to submit to employer if rent paid is above Rs. 3000/-

There is no requisite for submitting Rent Agreement to landlord.

A general declaration by employer along with its Address will be sufficient, not required to give it on stamp paper.

Thanks//VaibhavJ

2 Like

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@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 16 October 2013

@ Keshav

There is no link here between thresh hold limit for TDS on rent & Circular in discussion.

U/s10(13) there i a requirement wherin an employee has to submit PAN no. of landlord if they are paying rent above Rs. 1 lac p.a. So employer is not required to ensure TDS deduction by an employee.

First of all employee being an individual never does not deduct TDS while remitting rent keeping aside few exception.

Pl refer cir. no. 8/2012 issued last year & also go through this circular 8/2013.

Do revert if you have still query.

Thanks//VaibhavJ

1 Like

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 16 October 2013

Landlord declaration is attached herewith.

Thanks//VaibhavJ

Attached File : 112266 1239968 no pan from landlord.doc downloaded: 210 times

2 Like

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 16 October 2013

Vaibhav,

Thanks for your value Addition. & Attaching Declaration Format.

Now the Limit are like this...

Circular No.	Limit
05/2011	180000.00
08/2012	200000.00
08/2013	100000.00

Every time they have changed how our basic exemption limit has been changed, but this time something different...

@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 16 October 2013

Perfect Ayushji..

Thanks for initiating thread this will help many people.

Shikha (Student CA Final ) (37 Points)
Replied 16 October 2013

Is it mandatory to submit Rent receipt from Landlord??to the employer?? for HRA...

Does any1 have specific format for that? on stamp paper or plain paper??

Will rent reciept matter if the Rent agreement is Registered..???

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@VaibhavJ (Believe!! Live your dreams!) (33516 Points)
Replied 16 October 2013

@ shikha

Upto Rs. 3000/- employee is not required to submit Rent receipt from Landlord to Employer. So above Rs. 3000 it is mandatory for employer to collect the same.

Even if agreement is submitted Rent receipt is mandatory.

Format is available at: https://img.docstoccdn.com/thumb/orig/145898510.png

Thanks//VaibhavJ

1 Like

Keshav Dutt Beetan (Deputy Manager) (32 Points)
Replied 16 October 2013

Originally posted by : @ VaibhavJ
	@ Keshav There is no link here between thresh hold limit for TDS on rent & Circular in discussion. U/s10(13) there i a requirement wherin an employee has to submit PAN no. of landlord if they are paying rent above Rs. 1 lac p.a. So employer is not required to ensure TDS deduction by an employee. First of all employee being an individual never does not deduct TDS while remitting rent keeping aside few exception. Pl refer cir. no. 8/2012 issued last year & also go through this circular 8/2013. Do revert if you have still query. Thanks//VaibhavJ