There will be no documentary proof required if your HRA claim is up to Rupees 3000 per month. If the claim amount exceeds the limit of Rupees 3000 per month then you will be mandated to produce certain documents as proof of accommodation payment.
The Rent Receipts: A fully filled Rent Receipt with the complete details of the residency address, landlord’s name, amount of rent paid, signature of the landlord verifying the payment acceptance etc. along with a 1 Rupee revenue stamp.
Rental agreement in some cases: If the monthly rental amount exceeds Rupees 15000 per month (Rupees 1,80,000 per annum) then PAN Details of the landlord should be produced mandatorily for claiming the HRA exemption.
If an individual pay for a home loan and he/she avails tax benefits for the loan, the individual can still benefit from the HRA allowance provided by the employer. This is applicable when the employee owns a property but has rented out that accommodation to someone else while he/she themselves occupy a rented accommodation belonging to someone else.
This allows the employee to earn from his own property while benefiting from HRA policy which eventually lessens his/her burden of paying rent for the accommodation he has occupied.
To get maximum possible deductions with HRA calculations, use our advanced calculating system. All you need to do is fill in the correct information accordingly in the given field and hit “Calculate” button. It will do all the calculations for you.