"Tax Season" for employees have commenced and all of us will be busy calculating our tax liabilities and providing exemption certificates to our employers. All of you will be aware that for claiming exemption under HRA if we are living in a rented accomodation we have to produce rent receipt from the landlord. The following are the provisions notified by CBDT vide their Circular No.05/2011 dated 16.08.2011.
- No requirement to produce rent receipt if rent paid per month is less than Rs.3,000 - but if in case of assessment by the income tax officer, the income tax officer may direct to produce such receipt so it is advisable to get the rent receipt
- All rent receipts exceeding Rs.15,000 per month or Rs.1,80,000 per annum should contain the PAN number of the landlord. If the landlord does not have a PAN then the employee should give a declaration that the landlord does not have a PAN and provide in the declaration the details of landlord like his name & address
You don't want to buy a house with no down payment. I made that mistake two years ago, and barely avoided foreclosure. Just wait until you've paid down your student loans and you have at least 20 - 30% for your down payment. Besides given the current financial market, you'll be hard pressed to find a lender willing to give you a loan without a significant down payment.. . When buying a house make sure the mortgage payment, insurance, taxes, and HOA is no more than rent for a comparable place. that way in case you want to move you can "ladder" the property. meaning you can rent it out and move elsewhere. The rent will cover the monthly expenses and you'll benefit from any appreciation.
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Last year there was a provision in a certain CBDT circular that an employee need not produce rent receipts if the rent paid is upto 7000 per month...at the time of actual filing of return the receipts may be produced..do u have any link/citation of this?Please put that here if u have it.Thanx.
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Thanks for sharing valuable information
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