New house rent allowance exemption rule: How it will affect you: ZeeNews
The Central Board of Direct Taxes has now made it mandatory for employees to submit PAN of the landlord to the employer if the annual rent exceeds Rs. 1,00,000 per annum and such an employee is claiming House rent exemption (HRA) under section 10 (13A) of Income Tax Act.
Though CBDT circular, with an aim to tighten its noose around tax evaders, has come up with the new rule, many employees are finding it difficult to arrange for the new formalities while claiming their HRA exemption. In conversation with Reema Sharma of ZeeBiz.com Tarun Gupta, Managing Director, Mangla Consulting explains the details of how to go about claiming the HRA exemption.
HRA exemption of over Rs 8,333 a month will need the landlord`s PAN card details as per the new circular issued by Central Board of Direct Taxes (CBDT). What does the new circular mean?
As per new circular of CBDT vide its Circlular No. 08/2013 F.No. 275/192/2013-IT(B) dated 10.10.2013 if you are a salaried and claiming HRA (House Rent Allowance exemption and the rent paid by you is more than Rs.1 Lakh per year then it is compulsory to provide PAN (Permanent Account Number) of your Landlord. Earlier the limit was capped Rs.15,000 per month as against the current limit of Rs.8,333 per month.
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