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Tax all landlords in India

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#TaxLandlords #CollectTaxFromAll #ProtectTenantsInterests

Dear Fellow Citizen, 

I am a citizen of India and a tax payer. I have to suffer because my landlord neither enters into a legal rent agreement nor he furnishes his PAN card details and he simply escapes from paying tax. Anyone who is reading this message might be another sufferer like me who has to pay additional tax just because his or her landlord is not made accountable. 

Around 2 years back the income tax department had issued a directive to bring the PAN card of the house owner in order to claim HRA exemption if rent paid by an individual is in the excess of Rs 1 Lakh per annum. This mechanism of cutting the extra tax claimed by individuals is one sided and adversely impacts those who are not able to get PAN cards from their landlords

Problems faced by tenants:

1. Majority of landlords is not ready to enter a legal house agreement in order to avoid disclosing the PAN card details and escape from paying the tax.

2. They accept payment in cash so that no proof of income can be available.

3. They do not give a copy of electricity bill, telephone bill or any other relevant document which can be produced by the tenant to declare that owner does not have PAN card.

4. Tenants are left with no option other than bowing against the demands of landlords because at last they have to find a place away from home to live in.

Questions for authorities:

1. Why income tax department does not formulate a mechanism to track all the rented properties and collect the appropriate income tax from all those who are liable to pay?

2. A Landlord is supposed to enter into rent agreement while renting out the property but majority of them do not follow the norm. Why a stringent action is not taken against those who are offenders?

3. Mr. Narendra Modi, honourable Prime Minister of India, talked a lot about bringing black money back from abroad which is far from reality yet. Why does Mr. Modi not create strong mechanisms to curb the further creation of black money instead? 

Renting out the residential property has become a huge business especially in large metros/cities wherein people are working far from their home towns and living in a rented property. Landlords have been taking advantage of the situation and exploiting the tenants by not entering into rent agreements and also escaping from paying tax. 

A landlord who is having 3 tenants and not giving PAN cards to all of them is not only escaping from the tax payment but also impacting 3 individuals and forcing them to pay additional tax which is certainly not acceptable. 

I request PM Mr. Narendra Modi, FM Mr. Arun Jaitley and Income Tax Department of India to pay attention to this important issue at the earliest which affects the lives of millions in this country and come up with a mechanism to protect the interests of tenants and collect the tax from the escapers. 

If you believe that the issue described above is genuine and must be resolved to make the lives of salaried class and other impacted people better then please let us join hands and raise it to the authorities concerned. Please spread the word.

Thank you.

An Indian

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