During the year, I have paid rent to two landlords of amounts below R1 lakh each (R1.7 lakh in total). Do I still need to submit the PAN details of both my landlords to my employer for claiming the HRA exemption? — Pratik Panda
As per the income tax provisions, Permanent Account Number (PAN) of the landlord is required to be furnished if the aggregate of the rent paid during the previous year exceeds R1 lakh. The plain reading of Circular No. 20/2015 and Form 12BB suggest that the limit of R1 lakh applies per landlord. As such, since in your case the total rent paid per landlord does not exceed the limit of R1 lakh, PAN details of any of the landlords may not be required to be furnished in order to claim the HRA exemption.
Can a husband provide interest free loan to his wife out of the surplus funds left with him? Further, if the loan received by wife is invested in fixed deposits, will the interest earned on the same be clubbed in the hands of the husband? —Anand Jaiswal
There is no prohibition in law for a husband to give loan to his wife and for a wife to give loan to her husband. A transaction of loan implies an agreement to repay the borrowed money and as such a loan of money cannot be regarded as involving transfer of an asset for the application of clubbing provisions. However, the question whether a transaction which is described as a transaction of giving loan by a person to his spouse is really a transaction of loan has to be examined. If the finding is that it is a transfer of the amount in disguise and not a loan, clubbing provisions could apply.
The writer is founder of RSM Astute Consulting Group
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