Income Tax department puts HRA exemption under scanner

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Salaried taxpayers who claim HRA exemption will now have to report their landlord's PAN if the total rent in a year exceeds Rs 1 lakh. "In case the landlord does not have a PAN, he must submit a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee," says a circular issued by the Central Board of Direct Taxes last week. Till now, if the total rent paid was less than Rs 15,000 a month, there was no need to submit the landlord's PAN details. The new rule effectively reduces this limit to Rs 8,333 a month.

http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/income-tax-department-puts-hra-exemption-under-scanner/articleshow/24488081.cms

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Good job, landlords have been failing to pay income tax on the rents.