As it is well known that the income tax department has allowed Aadhaar card holders to use the biometric id number in lieu of the Permanent Account Number (PAN). But as per new provision of Income Tax, fine of Rs. 10,000 may be levied in case of wrong Aadhar Number. As per the latest amendments in the Finance Bill 2019, not only allowed people to use Aadhaar in lieu of PAN but also introduced a penalty for giving a false Aadhaar number. However, the new penalty rules are applicable only in cases where you are using Aadhaar in lieu of PAN and where quoting PAN is mandatory according to the income tax department rules. It is well known that although Aadhaar is issued by the Unique Identity Authority of India, yet the fine is not imposed by UIDAI but by the income tax department. Under Section 272B of the Income Tax Act, 1961, the department can impose a penalty in case of default in complying with provisions relating to PAN, i.e., failure to obtain, quote, or authenticate PAN.
The central government has
lowered the exemption limit for reporting the rent received. Salaried taxpayers
claiming HRA exemption and paying a rent of over Rs 1 lakh per year have to
give landlord's PAN (permanent account number). 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 lowers the rent limit from Rs 15,000 a
month to Rs 8,333 per month for claiming HRA exemption without making any
disclosures.
Though incurring actual
expenditure on payment of rent is a pre-requisite for claiming deduction under
section 10(13A) of the I-Tax Act, it has been decided as an administrative
measure that salaried employees drawing HRA up to Rs 3,000 per month will be
exempted from production of rent receipt.
The new rule is aimed at people
claiming HRA exemption for living in their own house. "It has to be noted
that only the expenditure actually incurred on payment of rent in respect of
residential accommodation occupied by the assessee subject to the limits laid
down in Rule 2A, qualifies for exemption from income-tax," CBDT said in
its circular.
HRA granted to an employee
who is residing in a house/flat owned by him is not exempt from income-tax.
"The disbursing authorities should satisfy themselves in this regard by
insisting on production of evidence of actual payment of rent before excluding
the house rent allowance or any portion thereof from the total income of the
employee," CBDT said.
Source : ET
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