House Rent Allowance (i.e. HRA) forms part of the salary component which is given by the employer to compensate the cost of living in a rented accommodation.
HRA deduction under section 10(13A) of the Income Tax Act is admissible to the employee who are actually paying rent. For claiming HRA deduction, rent receipt serves as an evidence for payment of rent. Importantly, rent receipt is mandatory document for claiming HRA deduction.
In the present article, we will briefly understand the meaning of rent receipt; contents and format of rent receipt and affixing of revenue stamp on rent receipt.
Rent receipt and meaning thereof –
In simple terms, rent receipt is an official document which is provided by the landlord, on receiving the rent, to the tenant. It is important document from the view point of both landlord and the tenant.
Contents and format of rent receipt –
Following is the list of mandatory details to be included in rent receipt –
- Name of landlord;
- Name of tenant;
- Rent amount;
- Date of payment of rent;
- Mode of payment;
- Rental period;
- Address of rented property;
- Signature of landlord;
- PAN of landlord [mandatory in case rent amount exceeds INR 1,00,000 per year]; and
- Revenue stamp [only in case when cash payment is more than INR 5,000].
Format of rent receipt –
Format of rent receipt is provided hereunder for ready reference –
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RENT RECEIPT (Under Section 10(13A of Income Tax Act, 1961) Date : _____________ Received from _______[Name of Tenant]_____________, the sum of INR _______ [Rupees (Amount in words)], on account of rent of _________[Address of property rented]______________________, which is rent for the period of _______________. The rent is received by way of ______[Mode of payment]____________________. (Signature of Landlord) Name of Owner: Address of Owner: PAN of Owner: |
Affixing of revenue stamp on rent receipts –
There is always a dilemma with regard to the requirement of affixing of revenue stamp on rent receipt. Clearing the same, please note that revenue stamp is mandatory on rent receipt only in case when cash payment is more than INR 5000 per receipt.
Following table, more effectively, clarifies affixing of revenue stamp on rent receipt –
| Mode of Payment | Affixing of revenue stamp on rent receipt |
| Cash payment is more than INR 5000 per receipt | Yes, affixing of revenue stamp on rent receipt is mandatory |
| Cash payment is less than INR 5000 per receipt | No, it is not required to affix revenue stamp on rent receipt |
| Payment via online transfer or cheque | No, it is not required to affix revenue stamp on rent receipt |
Also Read:
Employee can be dismissed for forging rent receipt: Delhi High Court
Format of Deceleration of Income Tax Deduction Claimed & House Rent Receipt
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