|Chennai||Rs. 27580.00 (0.18%)|
|Mumbai||Rs. 28700.00 (0%)|
|Delhi||Rs. 27700.00 (0.73%)|
|Kolkata||Rs. 28270.00 (0%)|
|Kerala||Rs. 27050.00 (0.74%)|
|Bangalore||Rs. 27350.00 (1.11%)|
|Hyderabad||Rs. 27660.00 (1.21%)|
A circular issued last month by the Central Board of Direct Taxes (CBDT) has mandated that tenants will have to produce their house owner's Permanent Account Number (PAN) for house rent allowance (HRA) exemptions of Rs 1 lakh or more annually, which works out to a rent of Rs 8,333 or more monthly. In other words, if paying a monthly rent of more than Rs 8,333, you must furnish the PAN details of your house owner to your employer.
Two years earlier, the Board had issued a similar circular, asking tax payers to produce a rent agreement or the PAN card of the owner if the monthly rent exceeded Rs 15,000 a month or Rs 1.8 lakh or more annually. With the recent circular, CBDT has further tightened the norms for deductions at source. Their circular says a tenant unable to produce the owner's PAN must give a declaration to this effect from the latter, with name and address, at the time of claiming HRA exemption. It should be signed by the owner, with a valid identity proof such as passport details, ration card or voter's card. A copy of the declaration should be given to the tenant.