The majority of the employees face troubles in understanding the purpose behind
rent receipt or lease receipt. Here in this article we will look into some of the key points
which will make you aware with those things.
The main purpose of rent receipt is to use them for tax reductions. Government of India allows tax reduction on HRA component of your salary.
But they also ask for proof that you have actually paid the rent to your owner along with his PAN number.
Here comes the rent receipt, it is the document signed by house owner along with his pan number mentioned on it.
How are we helping you in rent receipt?
We generate rent receipt format in pdf which is pre-filled with the details provided by you.
So, you no more have to search the rent receipt word format and do the messy indentation and fromating work.
Neither you need to search for rent receipt template.
We just save your precious time by auto generating in proper format. What you need to do is just fill up above form and get the properly filled rent receipt right into your Inbox.
Print it, sign it, and claim HRA. So simple and hassle-free.
Key points for rent receipt and HRA claim
If annual rent is exceeding more than Rs. 100000 (Rs. One lakh) then it is mandatory to mention PAN of owner
For claiming HRA exemption you need to produce valid rent receipt as the evidence for rent paid and submit to your employer.
If rent receipt amount for rent paid is more than Rs. 5000 then it is mandatory to affix revenue stamp on receipt.
If you missed to produce rent receipt to your employer within deadline, even then you can claim HRA tax exemption while filing income tax return (ITR).
Why do I need to submit rent receipt for claiming HRA
In order to give HRA tax benefit, your employer will need evidence that you have paid the rent.
The rent receipt is that evidence where landlord/owner signs and accepts that, he has received the rent amount.
What is HRA?
HRA stands for House Rent Allowance. It is one of the important part of your salary.
If you are staying on rent then HRA component is really very helpful to reduce your tax burden.
Income tax department will not levy any tax on HRA if you are living on rent.
Which documents required to claim HRA?
I have missed to submit rent receipt to my employer, at the time of declaration can I still claim the HRA benefit?
Yes of course! but clerical work is now increased. You need to adjust HRA claim in IT Return.
You should still generate the rent receipt using the form above, get it signed form owner. Make sure to keep these rent receipts as proof of payment for rent.
Please don't miss to mention PAN number and affix the revenue stamp on rent receipt in case if annual rent is more than Rs. 100000 (Rs. One lakh).
We can help you to file your IT Return, just WhatsApp/call on 9833073514
How can I get rent receipt?
Well, you can generate rent receipt in pdf format from our website by filing up the form given above, and get it signed from Landlord.
I have done notarized agreement, can I claim HRA?
Notarized agreement is not a valid agreement in Maharashtra state, please check rules for other states by contacting local lawyer.
The state of Maharashtra has mandated to register the rent agreement. however some of the employer don't ask for registered rent agreement,
in this case you may be allowed to claim HRA based on rent receipt. But it completely depends on employer whether to consider notarized/registered rent agreement.
You can register the rent agreement by WhatsApp/calling us on 9822228833
Is it mandatory to mention PAN of owner in receipt for claiming HRA?
If the annual rent is equals or exceeds Rs. 100000 (Rs. One lakh) that is Rs. 8333 per month,
then income tax department has made it mandatory to mention the PAN number of Landlord.
The rent amount is more than Rs. 100000 and my owner do not have PAN number. What to do in this case?
Still you should generate the rent receipt, get it signed from owner along with the owner declaration that he does not hold the PAN number.
click here for sample format.
If you are unable to get PAN you can search it on income tax portal here (know your PAN)
Why PAN number of owner is mandatory by Income tax department?
It was observed that majority of the people were submitting fake rent receipt by signing from friends/relatives.
If we mention PAN number on rent receipt, It becomes easy for Income tax department to track and identify fake ones.
In case if someone shows fake rent receipt of amount less than Rs. 100000 and not mention PAN number. Its still considered as fraud.
Should I produce rent receipt for every month?
Not necessary. You need to check with your employer. Some employer ask for monthly rent receipt,
few ask for quarterly rent receipt and some of the emploer can ask for single consolidated receipt for the financial year.
Some employer ask for first and last month rent receipt of financial year and in case if rent has changed in same financial year then rent receipt of that month as well.
However, efilingworks provides you all the format in a sigle click of button. You can submit the reqired format to your emploer and ignore rest of the format.
Why it is mandatory to affix one rupee revenue stamp on rent receipt?
It is a revenue generation strategy by government. Many people think that affixing a revenue stamp on receipt paper makes it genuine.
Actually this is not the case. Revenue stamp is not used for the purpose of authentication or genuineness.
Under the Indian Stamp Act 1899, Revenue Stamps was introduced to maintain court activities.
Under section 30, You can insist to payee/owner to sign with Re 1/- revenue stamp if the payment is more than Rs. 5000/-
In this case if the payee/owner refuses to give the receipt with a revenue stamp,
then he can get punishment of Rs. 100/- as a fine under section 65.
Do I need to produce any other document than rent receipt to employer for HRA claim?
Please check with your employer. Many employer ask for registered rent agreement along with rent receipt to avoid fraudulent claims.
You can do registered rent agreement online with efilingworks, for nominal fees.
you can also do the back dated registered rent agreement. Please WhatsApp/call us on 9822228833 for more details.
What is the acceptable rent receipt format by income tax department of India?
Income tax department have not fixed any format, however they have given some guideline
which says at minimal you should mention following things in rent receipt.
However efilingworks has made it very simple for you to generate rent receipt.
Just enter few details in above, and get rent receipt in proper format right into your inbox.
Print it. affix revenue stamp (if required). get it signed from owner.
Total rent received
Rental period for which this total rent is received
Owner PAN in case annual rent exceeds Rs. 100000 (Rs. one lakh)
Rented Property Address
One rupee revenue stamp in case total rent exceeds Rs. 5000
My owner is refusing to provide rent receipt, what should I do?
Please explain him the importance of the rent receipt.
You can also share link of this web page, he will get to know more about importance of rent receipt.
It is best to discuss rent receipt related details before signing the rent agreement, to avoid such circumstances.
I stayed on rent only for few month in a financial year, can I claim HRA?
Yes, why not! You can still claim HRA for the amount which you have paid.
Do we need to produce on paper hard-copy of rent receipt or soft copy is also fine?
It really depends on your employer, please check with them. In our opinion you should always maintain copies for future reference purposes.
I have changed the job in same financial year, How should I claim HRA?
When you join the new employer, they will inform you about all the required documentation which needs to be submitted to them.
The rent receipt should be one part of it, if not then you should proactively ask them about it.
Many of the employer allows you to claim HRA even when you are employed previously.
Your current employer might ask to produce Form 12B issued by previous employer in this case
Is there any deadline submitting rent receipt as a HRA claim proof to by employer?
Majority of the employer keep some deadline in many cases it is January end,
as employer need to deduct TDS in timely manner, by submitting rent receipt within the deadline decided by your employer,
they will adjust TDS and no extra TDS will be deducted by them. This reduces your clerical work at the time of filing IT return
If you missed the deadline, still you can claim HRA as part of IT return.
I am paying the rent to my family member, can I still claim HRA?
Yes, If you are not part of HUF (Hindu Undivided Family). Make sure your family member is not your spouse.
Please make sure you actually pay the rent to them and maintaining bank records for rent paid.
Also, You should generate rent receipt using above form get it signed from actual owner of house.
If income tax department suspect that you are claiming HRA based on fake evidence, you may get into trouble by income tax laws.
How HRA is calculated?
HRA benefit is minimum of A, B, C amount mentioned below.
A: Actual HRA received
B: Rent Paid- 10% of Basic + DA (if any)
C: 50% of Basic + DA (if any)
However many of private employer do not provide DA, so DA will not be considered in calculation.
How to claim tax exemption on HRA at the time of filing the ITR?
Please follow the steps given below
Step 1: Calculate tax exemption amount as mentioned in point above
Deduct the amount of exempt HRA from the Income Chargeable under the head salary [column 6 of your Form 16, Part B].
Update the amount under the head 'Income From Salary /Pension' in your ITR form.
Who can claim HRA exemption ?
You should be salaried employee
HRA should be one of the declared component by your employer in your salary slip.
And of course you should be living in rented property.
I am a salaried person, is there any way I can get tax exemption for the rent which I am paying?
Yes. Although you can not claim HRA, still you can get some tax benefit for rent you are paying under the income tax section 80GG.
Please note that declaration in Form 10BA is needed for such tax benefit.
I am not a salaried employee, can I still claim the HRA?
No you cannot. But there is a good news for you. You can still get some tax benefit under the section 80GG.
Please note that declaration in Form 10BA is needed for such tax benefit.
Can I claim HRA if I am living in my own house?
No you cannot. You can not show that you are paying rent to yourself.
In such case all of the HRA component of your salary is fully taxable. You need to pay income tax as per income tax slabs decided by income tax department of India
Can I claim HRA for multiple house on rent?
You can claim HRA of one house at in given time period.
If you have lived in multiple rented house after one another then you can claim HRA on multiple rented house.
If the rental period is overlapping between multiple rented house then, you can claim HRA only for one house.
Well, you should smartly choose the one in which you are getting maximum HRA tax benefit.
Can I claim HRA and Home loan both at a same time?
Yes, You can claim both of them under following conditions.
You are not living in the same home, for which home loan is taken
In case if rented home and the loaned home are in the same city, you should have very valid reson to justify your stay on rent.
for eg. the house you own is far away from your workplace and very difficult to commute on daily basis.
Can I pay rent to my spouse?
Although, technically it is possible, income tax department doesn't allow to claim tax benefit for HRA in such case.
Can Husband and wife both claim HRA tax benefit?
Yes. Please make sure you get signed rent receipt form your owner on both of your names.
Also, make sure that the registered rent agreement has mentioned both of you as tenant. You can register your rent agreement by
WhatsApp/calling us on 9822228833
I am staying on rent with my friends as a shared apartment, how much can I get as HRA exception?
HRA can be claimed by all the tenants/friends mentioned on registered rent agreement in equal proportions.
eg. if you are two friends staying on rent on sharing basis each one of you will be eligible get 50% of total rent amount as HRA claim.
Please note that both of you should get proper rent receipt signed by owner. You can generate the rent receipt by filing up above form.
Once we receive your request for rent receipt generation, we will create rent receipt in proper format and email it to you for free!
Then you just need to get it signed form owner.
Is HRA part of 80C exception in income tax rules?
No it is not, rather its a separate component to claim tax benefit.
Please feel free to WhatsApp us for further queries on 9822228833. You can email us at email@example.com as well.