Hi All
According to a circular issued by the Central Board of Direct Taxes (CBDT) on 10 October 2013, if annual rent paid by an employee exceeds Rs.1 lakh 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.
Considering the above point, can anyone advise me what should be done in case of an employee who paid 1.5Lakh as rent and out of this Rs.90,000 was paid to one landlord and rest of the amount was paid to another land loard? Should the employer collect PAN/Declaration of both landloards since the total rent paid is above 1Lakh? Or it can be avoided since payment to neither of the landloards exceeded 1Lakh?
CAclubindia
