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Is PAN mandatory for rent receipt?
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 are the proofs required for HRA?
To claim House Rent Allowance (HRA), you are asked to submit important documents like rent receipts, rent agreement to your employer before the end of the financial year. If the amount of rent exceeds Rs 1 lakh/annum, the PAN No of the landlord is also required.
Does private company give HRA?
Usually, private sector employers do not pay dearness allowance to employees. Most companies keep HRA as 40\% or 50\% of the basic salary of their employees to make the salary structure efficient, says a Pune-based tax expert with Adroit services. The least amount as per the income-tax provisions is Rs 11,000.
What should I do if I forgot to submit the rent receipts to my employer?
Forgot to submit rent receipts to your employer on time? Don’t worry! If you live on rent and have made rent payments you can claim deduction on House Rent Allowance at the time of filing your return. All you need is your rent receipts and PAN of your landlord (where rent payments are more than Rs 1,00,000 per annum).
What if rent paid is less than 10 of salary?
If an employee does not receive a commission or a dearness allowance, then the HRA will be around 40\% – 50\% of his/her basic salary. The actual rent that is paid should be less than 10\% of the basic salary. In case you’re staying in a metro, 50\% of the basic salary and 40\% if you live in a a non-metro city.
What is it proof submission?
Every year, salaried professionals/employees have to submit investment proofs so that their employer deducts the correct amount of TDS (Tax Deducted at Source). Employers in India are required to cut TDS every year and they might deduct more or less tax than necessary if the correct investment proofs are not given.