Showing posts with label HRA- Rent Receipts. Show all posts
Showing posts with label HRA- Rent Receipts. Show all posts

Wednesday, January 9, 2013

Document Required for HRA Exemption


According to the notification issued by the Income tax department, now landlord PAN card is must to get tax exemption against HRA allowance.
Salary slip of salaried employees covers a component called as ‘HRA Allowance’. Each employee get this component every month to pay off his house rental. Employees staying at rented houses can  claim tax deduction on this amount under income tax act 1961.
Earlier only rent receipt was required to get the tax exemption but as per the latest notification from Income Tax Department, now one has to submit the PAN details of the landlord in case of total rent exceeds Rs 180,000 p.a. In some cases I.T Companies its upto 2,00000 Per anum.

Update 2014: PAN Details Compulsory In Case Of Total Rent Is More Than Rs 1,00,000 Per Annum.

2013:PAN Details Compulsory In Case Of Total Rent Is More Than Rs 1,80,000 Per Annum In some cases I.T Companies its upto 2,00000 Per anum.

For Example, Mr X is working in a IT company where his salary package is having a component named as ‘HRA allowance’. Mr X is staying in a rented apartment on rent Rs 20,000 p.m and to get the tax exemption he submits rent receipts as proof to his companies finance department to get tax exemption.
As of now this was enough to get the tax exemption but with the latest change made under regulation, now one has to submit the PAN details of the landlord in case of monthly rent is more than Rs 15,000. Which means from now on Mr X needs to submit original rent receipts as proof of rent as well as PAN card copy of the landlord to get the tax exemption on HRA.
In the case, if the landlord doesn’t own a PAN card, he must sign the self declaration saying that he don’t have the PAN card and that copy must be submitted to the employer to get the HRA exemption.

Link : Rent Receipt Format

Src:Fingyan