Is revenue stamp required for rent receipt?

The government issues revenue stamps to collect taxes for the delivery of certain services. Similar to postage stamps, revenue stamps are a type of label issued by a government to collect taxes or duties and are used in documents, such as cash receipts, tax payment acknowledgements, rent receiptetc.

As per the Indian Stamp Act, 1899, a ‘stamp’ means any mark, seal or endorsement made by any agency or person duly authorized by the State Government and includes an adhesive or impressed stamp for the purpose of duty chargeable under the Act . Let us now find out where you can use the revenue stamp.

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Revenue Stamp: When is it required?

Revenue stamp is to be affixed on receipt, in which note, memorandum or writing such as:

• Receipt of money, bill of exchange, check or promissory note.
• Receipt of movable property received in satisfaction of a debt.
• Acknowledgment for a debt or demand, or any part of a debt or demand that has been satisfied or discharged.

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Where can you buy revenue tickets?

Revenue stamps can be purchased from local post offices. The cost of revenue stamp is Re 1 for each stamp. Nowadays local shops and some online shopping portals also carry revenue stamps and sell them at a higher price than post offices. It is advised to buy it from the post office to avoid the possibility of getting a fake stamp.

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Is revenue stamp required for rent receipt?

If the monthly rent is less than Rs.5,000, there is no need for revenue stamp even if the rent is paid in cash. If the monthly rent paid in cash exceeds Rs 5,000, it is mandatory to affix a revenue stamp. rent receipt And get it duly signed by the landlord. Also, if the rent is paid in cheque, you are not required to affix revenue stamp on the rent receipt.

revenue stamp on rent receipt

if you want to claim HRA benefits From your employer, it is mandatory to provide confirmation of payment of rent to the employer. To provide such confirmation, you will need to collect the rent receipt from the landlord.

There is a prescribed format of rent receipt which should be filled properly. The landlord gives the rent receipt only after taking the rent from the tenant. If the rent is paid online or through cheque, there is no need to affix revenue stamp on the rent receipt. When rent is paid in cash, the rent receipt affixed with the revenue stamp becomes the documentary evidence to establish the transaction. If there is a legal dispute between the landlord and the tenant, the rent receipt can be produced as evidence in the court.

Value of revenue stamp on rent receipt

As per the amendment in Schedule I of the Indian Stamp Act, 1899, where the cash payment exceeds Rs.5,000, you have to affix a revenue stamp of the value of Rs.1 on the rent receipt.

Rent Receipt Format (Filled)

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Component of Rent Receipt with Revenue Stamp

A rent receipt for cash payment of rent becomes valid when it bears the revenue stamp and contains the following information:

• tenant name
• landlord name
• rental property address
• Rent Amount
• rental period
• Mode of Payment – Cash/Online/Cheque
• landlord’s signature
• If the rent amount exceeds Rs 1 lakh per annum, the PAN number of the landlord should be furnished on the rent receipt.
• Details of other charges like water bill, electricity charges etc. are given.
• If the cash payment exceeds Rs 5,000 in the rent receipt, a revenue stamp should be affixed.

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