Tuesday, December 17, 2013

Get ready to pay more tax as new HRA exemption rule introduced

As per new circular of CBDT dated 10.10.2013 if you are a salaried and claiming HRA  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, This move will bring those landlords under income tax net who lease there space but don’t declare their income correctly.
 One has following options:
1) Provide landlord PAN 
2) Provide Declaration from Landlord with name, address & duly signed.
3) Find out a new space

This is done to collect more tax from service class and let corrupt people make more money.