It helps them meet the cost of living on rent if the company is not providing them accommodation. Most companies offer House Rent Allowance (HRA) to employees as a component of their CTC (cost-to-company). Who Needs to Submit a Rent Receipt and How? Employers provide the HRA tax benefit after verifying the rent receipts. You must provide a rent receipt as evidence of the payment of rent to your employer. It is also mandatory to submit a rent receipt to claim a House rent allowance (HRA). It works as a legal document endorsing the transfer of money from a tenant to a landlord. Why Do You Need a Rent Receipt?Ī rent receipt is physical proof of rent paid. Also, if you are eligible for a tax exemption under HRA you must maintain rent receipts for the same. Especially if you are a tenant paying your rent through cash or cheque must maintain their payment records. It is an essential document to resolve any rent payment disputes that may arise. This helps both parties keep physical records of the payments. It is issued by the landlord and can be used for legal or taxation purposes.Ī rent receipt includes important information such as the rent amount, date of payment received, and medium of transaction. A rent receipt is a document to record the payment of rent by the tenant to a landlord.
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