Rent agreement/receipts for HRA
This query is : Resolved
14 July 2024
Is rent agreement mandatorily required for rent that I pay to my father to claim HRA. I have rent receipts and I have paid via bank so is rent agreement still required? As I coul d not find which section/rule requires rent agreement mandatorily?
14 July 2024
If your employer is ok just with rent receipts, no problem. For you to claim HRA in ITR, most important is to have that deduction in form 16. Department will require all these proofs if HRA is not claimed in form 16, but claimed in ITR.
15 July 2024
So keeping my personal computation aside, the company that I work in I am also responsible for preparation of computation of all employees and calculating their tax liabilities, so now as an employer are we required to get those rent agreements as well even if the employee is furnishing rent receipts, is there any provision in income tax act or rule that mandates on employer to call for rent agreement as well?
15 July 2024
Yes, before deducting TDS it is responsibility of the employer/s to justify the deductions availed by their employees. Hence all the employers get these documents along with form 12BB from their employees.
An alternative is convince the employee & fill details for new tax regime (in TDS return), let employee file return under old regime (if beneficial) and provide these proofs directly to ITD.
An alternative is convince the employee & fill details for new tax regime (in TDS return), let employee file return under old regime (if beneficial) and provide these proofs directly to ITD.
15 July 2024
But it can be verified from rent receipts as well right?
15 July 2024
Yes, but without rent agreement which is mandatory under law, how can a landlord issue rent receipt. It creates doubt about the deduction claimed; and hence ITD mandates rent agreement first.
25 August 2024
You are welcome.
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