There is bad news for individuals who prepare rent receipts to acquire tax exemption about housing rent allowance (HRA). The Central Panel of Direct Taxation's (CBDT) has caused it to be mandatory to file the landlord's PAN details if your annual rent is greater than Rs 1 lakh or perhaps Rs 8, 333 per month.
The limit was Rs 15, 000 per month earlier. If the landlord doesn't have a PAN, the taxpayer will have to submit a declaration to this particular effect from the landlord, along using the name and address with the landlord.
The new rule does apply for 2013-14 also. Also, at existing, those who get HRA all the way to Rs 3, 000 per month are not needed to produce rent invoices.
However, the circular says, "This concession is only when it comes to tax deduction in source... the Assessing Officer is unengaged to make such enquiry when it comes to satisfying himself the employee has received actual expenditure about payment of rent payments. "