Is rent receipt mandatory for HRA exemption?

For salaried employees it is a major concern when it comes to claim exemption for HRA. not all of them have proof of payment of rent to the landlord. When we say proof, it is either rent agreement or rent receipts. These are the two documents which prove that the claim is valid. Now the question arises ‘Is rent receipt mandatory for HRA exemption?’ I will share a few things with you.

Back in 2017, a salaried employee was denied tax exemption as she was unable to produce proof of rent payment to her mother. So I believe this makes it clear how important it is to have rent receipts as a proof for HRA exemption.

If the rent amount exceeds Rs. 3000 then the proof of rent payment must be produced to the employer by the employee. 

There are several components which are important to make a valid rent receipt. Here is a list for your reference:

• Name of the tenant and the landlord

• Property address

• Amount of rent

• Date of rent payment

• Payment mode

• Signature of the landlord and the tenant

• Revenue stamp if the rent payment exceeds Rs. 5000 per pay

• PAN details of the landlord if the payment exceeds Rs. 8300 per month

If you don’t have rent receipt or rent slip. You must produce the bank statement in case the payment is made via online channel, i.e., net banking, credit card or debit card.

You can make rent payment via NoBroker App. The NoBroker rent payment option helps you pay your rent faster via online modes and you will receive the rental receipts as soon as the payment is made. Not only this, you get attractive offers and cashbacks as well.

I hope now you know ‘Is rent receipt mandatory for HRA exemption or not.’