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Rental Agreement Mandatory Income Tax

HRA rent receipts are not required, but may be requested by the income tax officer if they suspect your rental vouchers. I highly recommend having a lease if you pay rent to your wife or parents, as this helps prove the landlord-tenant relationship. In case of renting with other friends such as a flatshare, I recommend a lease to illustrate the amount of rent shared between tenants. A person must file the rental receipts and the lease to benefit from the home rental subsidy. If the rent he has paid exceeds ? 1,00,000 per year, he must submit the details of the landlord`s PAN card along with the rental receipts and lease. False supporting documents can be taken by the income tax officer and you may have to pay penalties with the income tax due. Rental income paid during the year serves as proof of rent. If no rental receipt is available, you must deposit your rental agreement with the account statement that shows the rent paid. b) The actual rent paid annually at more than 10% of the annual salary If you own a house but live in another city because of your work, you are only eligible for the HRA benefit if you live in a rented property. A person can receive the HRA benefit if they pay the rent to the family member, but the person cannot own this unit. Therefore, if a person resides with his parents and has the necessary documents to prove the rent paid, he can claim the benefit.

Sharp Insight rich, detailed stories about 20+ sectors No rental receipt required for rent of less than 3 thousand per month. Only the HRA declaration is sufficient to claim a tax exemption. No, HRA is only granted for a rented house in the city of the place of work concerned. Note that employees who earn HRA up to Rs 3,000 per month are exempt from creating rental income. Although – we highly recommend that you keep this for your own check-in. This is stipulated in CBDT Circular No. 8/2013 of 10 October 2013 and circular 20/2015 of 2 December 2015. Some people create false rental supporting documents and try to claim the HRA tax exemption. No, the deduction referred to in Paragraph 80GG is only available for the self-employed or the worker who has not received an HFG during the year. The lower deduction limit at the section is ? 60,000 per year. You pay the rent of more than 1 Lakh per year, which makes about INR 8,333 or more per month.

He earns a basic monthly salary of Rs. 30,000, medical supplement of ?2500, other allowances of ?2,500 and HRA of ?15,000. An annual rent of Rs 1,00,000 corresponds to Rs 8,333 per month – so if you rent a house and make a payment of more than 8,333 per month – consider getting the owner`s PAN, or you can lose the HRA exemption…

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