Frequently Asked Questions
Q. What is a rent receipt?
When a tenant is paying rent on monthly basis to the landlord for occupying his/her apartment, then the landlord gives the tenant a rent receipt. This rent receipt acts as a proof, which tells you that, the tenant has managed to pay the monthly rent. Generate this receipt for each month’s rent as investment proof to claim HRA Benefit and save tax on rent, so you will have to get 12 rent receipts for a year.
Q. Why do I need a rent Agreement?
You require a rent agreement with your landlord, as this agreement contains all the rent, lease and time period details, which you may have to submit to your employer, in case you are claiming HRA.
Q. Is it necessary, for an employee to submit his/her Rent Receipt to the employer?
Yes, it is important for an employee to submit this receipt to his/her employer, as they can claim HRA exemption if their annual rent is more than Rs. 1 lakh, producing this receipt is mandatory. HRA exemption will not be provided if Rent Receipts are not submitted. On submission of these Receipts, the employee’s final tax liability will be calculated accordingly, and TDS
will also be adjusted so that the employee does not have to pay tax on HRA.
Q. Is the PAN of the landlord mandatory for claiming House Rent Allowance?
If the annual rent paid by the salaried taxpayer is more than Rupees 1 lac then the PAN of the landlord must be submitted mandatorily, as by doing this the tenant will become eligible for claiming House Rent Allowance
Q. I have switched my job, can I show my previous rent receipts in my new company?
If you are getting HRA exemption from your current employer, then you will have to present your old rent receipts to the employer. You must present Form 12B to disclose your earning from previous employer to the current employer.
Q. What should I do, if my landlord is not providing me the rent receipt?
You must check with you landlord regarding rent receipt before taking accommodation, as if he/she is unwilling to provide it to you, you will not be applicable for HRA exemption.
Q. I stayed in a rented apartment for a few months, can I get rent receipts?
Yes, you can surely get this receipt for the months you have stayed in your rented apartment
Q. Is there a period limit for the submission of these receipts?
There is no deadline as such to provide rent receipts, but generally employers keep a deadline for the employees to submit their proof, so that there won’t be any delay in TDS deduction and if the individual provides all the required documents then he/she can save themselves from TDS deduction.
Q. How can I use these receipts to get tax deductions?
If you have taken a home loan and you are paying interest for it, but you are staying in some other city, in a rented apartment, then you can claim income tax deduction on the interest of your home loan and you can also claim HRA on the basis of these receipts from your employer.
Q. I forgot to submit these receipts, before the declaration date. What should I do?
Don’t worry, even if you forgot to submit your rent receipts, before the declaration date, as you are still eligible for House Rent Allowance exemption. The only thing you need is your rent receipts and the PAN of your landlord if your annual rent exceeds Rs. 1Lakh.