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Income Tax Proof Submission- HRA and Rent Receipt

 
 

Most of the companies would be asking for tax proof submission for the financial year 2014-2015. We are giving you the details related to House Rent Allowance (HRA) which is acceptable in most of the companies.

However different companies have different policy for Income Tax proof requirement. So, it is advisable to contact your Finance/HR. We hope that the information provided below is helpful.

You can leave a comment if this article was helpful or if you have any queries.

House Rent Allowance (HRA)

Case 1. Where monthly HRA <= INR 3,000

If your monthly HRA defined as is less than or equal to INR 3,000, there is no need to submit any documents for the rent paid. It is enough if rent values are updated and submitted in your portal

Read More Related Article: Forms and Frequently Asked Questions related to Tax Investment Proofs

Case 2: Where HRA> INR 3,000 & Rent <= INR 8,333

If your monthly HRA defined is greater than INR 3,000 and your monthly rent payments are less than or equal to INR 8,333/-, you would need to submit the following documents:

• Original rent receipt for any one month. Note that any rent revision during the year would need to be supported with a fresh receipt. (refer below for format)

• A copy of Lease Agreement. In absence of lease agreement, rent receipt should contain the Cheque / EFT details and additional supporting document like bank statement extract/payment screenshot to be provided.

Case 3: Where HRA> INR 3,000 & Rent > INR 8,333

If your monthly HRA as defined is greater than INR 3,000/- and your monthly rent payments are greater than INR 8,333/-, you would need to submit the following documents:

• Original rent receipt for any one month. Note that any rent revision during the year would need to be supported with a fresh receipt. (refer below for format)

• A copy of Lease Agreement. In absence of lease agreement, rent receipt should contain the Cheque/EFT details and additional supporting document like bank statement extract/payment screenshot to be provided.

• PAN of the Landlord (or) the Declaration from Landlord if he/she does not have a PAN, (refer below for format) along with proof of residence of Landlord

Notes:

• The format for the rent receipt is given below. Please ensure that your receipt includes all the Information mentioned in the format.

• Please note that only the amount paid towards rent is eligible for exemption. Other amounts paid, such as maintenance charges, electricity bill, etc., food in case of paying guest accommodation are not eligible for exemption.

• Lease period (starting & ending) should be clearly mentioned in the lease agreement.

• PAN of Land lord will be validated for its correctness before approval.

• The Rental Agreement should be in a Stamp Paper. Renewal of lease agreement also should be in Stamp paper only.

• In case of Hostel accommodation, rent receipt in the hostel’s letter head or pre-printed receipt book can be submitted towards rent payment proof.

• In case if there is no lease agreement, PAN of the Hostel Owner is to be provided or the No-PAN declaration from the Hostel Owner is to be provided in the prescribed format given below irrespective of the rent amount.

• If No-Pan Declaration is provided then ownership proof of the Landlord (Electricity bill or Property tax or Water tax receipt) has to be provided.

• In case rent receipt could not be produced, copy of lease agreement and bank statement showing the debit in the name of the landlord with rent amount for one of the months during

Revenue stamp should be affixed in the rent receipt duly signed across the stamp by the Landlord.

Download the forms here:

1) Sample Rent receipt

2) Declaration to be provided by the Landlord for Non availability of Permanent Account Number (PAN)

 

 

 
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