House Rent Allowance (HRA) is usually a part of an employee’s salary. In case, tenants are paying more than Rs 3,000 as monthly rent, they will have to show proof of payment of rent recent receipts, It is important to claim tax deduction against HRA component of your salary.
Therefore, your employer insists that you produce documentary proof of paying rent every quarter, failing which a huge amount of tax will be deducted from your salary.
Even if you are paying your rent using online methods, the rent receipt has to be submitted to the employer.
rent receipt format
The format of the rent receipt is simple. Rent receipt format based on details of identification landlord and tenantMonthly rent amount and address of the rented property.
Read more at Rent Receipt and HRA Exemption
rent receipt template
Here is the basic template of rent receipt.
Rent Receipt Format (Filled)
read also about Rent Receipt and Tax Benefit
Details in Rent Receipt
- tenant name
- landlord name
- Monthly/Quarterly/Annual Rent
- tenant’s signature
- landlord’s signature
- rental property address
- Revenue stamp if cash payment exceeds Rs 5,000 per receipt
- PAN card of the landlord, if your annual rent payment is more than Rs 1 lakh or Rs 8,300 monthly
- date
- Letter number
- full term
When is the rent receipt required?
House Rent Allowance or HRA can be claimed only if you produce the rent receipt instead of paying the rent. It is mandatory to provide the rent receipt to your employer if you want to claim HRA for rental accommodation with monthly rent payment of more than Rs.3,000. Those paying rent to their parents also need to provide rent receipt as proof of payment to claim HRA deduction.
What is the value of the revenue stamp on the rent receipt?
A revenue stamp of Re 1 is put on each rent receipt.
Is it necessary to give PAN to the landlord?
Only those tenants who are paying a monthly rent of Rs 8,333 or Rs 1 lakh annually will have to give the PAN of the landlord.
Is it necessary to give photocopy of PAN card?
Yes, apart from quoting the PAN of the landlord, you also need to provide a self-attested copy of his PAN along with the rent receipt.
When do I have to submit the rent receipt?
Your employer will ask you to submit the rent receipts before the end of the financial year, usually between January and March. Even if you are paying your rent through credit card or other online money transfer channels, you need to obtain the rent receipt from your landlord and submit it to your employer to claim HRA deduction.
What if I fail to submit the rent receipt to my employer?
If you fail to submit the rent receipt on time, your employer will deduct the entire taxable amount as TDS as per your tax slab. However, you can claim HRA exemption in your ITR. For this you will need to calculate the exempted HRA amount manually.
questions to ask
Can the rent receipt be generated online?
Yes, tenants can generate online receipts for free using online rent receipt generators on various platforms.
Are online copies of rent receipt valid?
Yes, if the rent receipt has all the information and signature of the landlord, it can be submitted to the employer in the form of a soft copy.
