Table of Contents
Are you still facing any problem to get your rent receipt to claim HRA? Many of the salaried employees may faces this problem at-least once in their career life.
Being an tax saver, it was critical for you to understand the exact proper method to claim HRA by makes the landlord to convinces to provide the receipt for paid home rent. As per new judicial law, your tax field officer have the rights to verify your documents which you have submitted for HRA claims.
In this blog we have clearly explained how you will get your legitimate PayTM rent receipt for your HRA claims and it's benefits and many more.
How to get Rent Receipt from PayTM application?
Below are the steps in which you can generate your home rent receipt from PayTM application.
- At first login to your PayTM app.
- Select Recharge & Bill Payments → Rent via Credit Card.
- Choose from the option what you want to pay far, such as House rent, Society maintenance, Office/Shop rent or Broker fees.
- Enter the necessary details of landlord account number, bank IFSC code, mobile number or UPI ID.
- Enter the rent amount and click on Proceed.
- Select the payment option from the following payment method such as, Debit/Credit card, UPI, PayTM Postpaid or PayTM wallet.
- Now your payment will be done and you can download your Rent Receipt from the payment history of rent payment.
What is Rent Receipt?
Rent Receipt is a document of records from the landlord to the tenant for paying their rent. The Rent Receipt is a legal declared by the government of the country and it will be very much useful for the tenant for paying their tax purposes.
The Rent Receipt includes some of the important information such as rent amount, date of the payment and mode of the payment. This may helps both the side to keep it as a physical records for any rent payment clarifications for future purposes. Also it will be very much useful for HRA tax exemption at the time of tax settlement to the government at the end of the year.
Why Rent Receipt needed?
Rent receipt will act as an physical proof than saying in mouth as rent has been paid. It has been act an an legal document because the fund transaction between landlord and the tenant will be held online. It also helps to claim the House Rent Allowance (HRA). Regarding HRA claims you must submit your rent receipt to your employer and they will verify it before tax submission.
What are the Components of a Rent Receipt?
The rent receipt must have the following details,
- Tenant Name
- Landlord Name
- House Address
- Rent Paid
- Rental Period
- Signature of Landlord
- PAN of the landlord (if your annual rent more than Rs. 1,00,000)
Important things to keep in mind while paying the rent
- The valid rental agreement with your landlord is must and have the following information, such as your monthly rent, duration of the agreement which will consider as how long you gonna stay in your landlord place, and if any utility bills which you have to pay on monthly basis or yearly basis.
- If your salary exceeds more than Rs. 1 lakh per year than you must need to submit your landlord's Pancard.
- It is suggestive to pay your monthly rent via any online payment to track your every transaction in easier method than paying CASH in HAND.
- If you are living in share based apartment then you must share your co-living tenants information such as, number of tenants, rent distribution ratio and utility bills distribution ratio.
- You must collect your rent receipt on each time you pay the rent and it is must to submit with your employer on the time of tax submission.
Who & How to Submit a Rent Receipt?
Now a days most of the companies includes the House Rent Allowance (HRA) in their employee CTC (Cost-To-Company) which assist them in meeting the cost of employee living on their own way if company doesn't provides the house. HRA is not only a benefit it also a tax breaker. You must submit your rent receipt to your HR department to be eligible for an HRA and your employer will require it on quaterly, half yearly or annually rather than monthly. The HR team will verify that you have paid your rent before HRA tax exemption.
HRA for Self-Employed Professionals
Under the Section 80 GG even a self-employed individuals can also claim HRA tax exemptions. This Section can also be used by salaried employees to claim their HRA tax exemption when they have not receive HRA claims.
HRA Tax Exemption for Salaried Employees
Under the Section 10-13A of the Indian Income Tax Act for HRA tax exemption which will follows as below,
- HRA will be provided by the employer.
- If an employee lives in metro cities like Delhi, Mumbai, Kolkata or Chennai, he/she will be eligible of 50% from their salary, and if they lives in non-metro cities they will be eligible of 40% from their salary as HRA tax exemption.
- The actual monthly rent will be paid by he/she should be less than 10% of their salary.
List of mandatory Documents required to Claim HRA
Below are the list of documents which employee must provide to claim HRA as tax exemption.
If the employee home rent exceeds more than Rs, 1 lakh he/she must provide the landlord's PAN card details.
- Date of rent paid
- Landlord name
- Tenant name
- Revenue stamp with the landlord signature
- Landlord PAN card details
- Address of the accommodation
- Duration of the stay
- Photocopy of the rental agreement (if required)
What is the Last Date to file ITR and claim HRA Exemption?
The deadline for file tax and submit ITR (Income Tax Returns) for all salaried employees who want to claim HRA and other tax exemption is July 31st of each financial year.
The deadline for self-employed individuals is,
- July 31, is for those do not need audit for their income.
- September 30, is for those who audit their income.
