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Can we give parents PAN card for HRA?
If your annual rent payment exceeds INR 1 lakh, you are required to provide the PAN card details of your landlord, in this case, your parents, to your employer. Without doing either of these, you cannot claim tax exemption on your HRA if the rent paid is above INR 1 lakh annually.
Is PAN card copy mandatory for HRA exemption?
Documents like rent receipts and rental agreements will be required to be submitted to the employer for claiming deduction for house rent allowance. If the payment of rent is more than Rs 1 lakh per annum, then PAN of the house owner will be required to be submitted.
What happens if house owner does not give PAN number?
If your house owner does not have a PAN, you need not worry, as long as he/she is ready to sign a self declaration stating he does not have a PAN. You can submit a copy of this declaration to your employer and avail of the HRA deduction.
How HRA exemption is verified?
In order to give you the benefit of HRA, the HR department needs to verify whether you have actually paid rent for allowing HRA tax exemption. Rent receipts act as a proof that you have actually paid the amount and not showing any fake expenses to save tax.
How much cash can you legally keep at home India?
Cash Transaction Limit – Section 269ST Section 269ST imposed restriction on a cash transaction and limited it to Rs. 2 Lakhs per day. Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more: In aggregate from a person in a day; or.
What happens if I claim fake HRA on my tax return?
In case, you had claimed fake HRA, then avoid trouble at the time of filing your income tax return.So, when you are filing your Income Tax Return pay the tax that you had saved under the curtain of fake rent receipt. Click here to know how much HRA tax exemption you claim.
How to claim tax exemption on HRA under new law?
New Law Perquisites As per the law in force, all employees who declare HRA of above Rs. 1, 00, 000 a year will be required to submit their landlord’s PAN details when claiming exemption. The employee is required to submit a form, known as the PAN Card Declaration from Landlord along with the tax exemption claim form.
Is PAN card required for tax exemption for HRA?
According to an earlier notification, the landlord’s PAN card details were to be mentioned in the form when filing a tax exemption for HRA if the annual figure was above Rs. 1, 80, 000. However, in 2013, the government released a new circular stating that PAN details had to be mentioned for HRS exemptions for amounts above Rs. 1,00,000.
Why do some employees ask their parents to sign documents for HRA?
In many cases employees asks their parents or relatives to sign the documents for HRA claim or sometimes employees shows the higher amount on their rent receipt than they actually pay so that they can get the exemption. In case IT department suspects your case as fraud, in that case you will have to go through verification