backdated rent agreement on today's stamp paper

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The discussion explained that a rent agreement for HRA claims can be executed on the current date while mentioning an earlier effective period. However, acceptance during income tax scrutiny is not guaranteed, though rent receipts remain important supporting documents.

Ashok N

Ashok N (Querist)

15 March 2022 I want to claim HRA deduction for Apr2021 to Mar2022 but as I have not made rent agreement earlier because I was not aware it is mandatory so can I make the agreement on today's date of stamp paper
Is it valid to Submit to income tax dept if scrutiny comes?

CA Puja Sharma

CA Puja Sharma (Expert)

15 March 2022 It may not be accepted by the department because the agreement was executed late.
But, you can take the chance and execute it now.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 March 2022 Yes, don't back date it put it today's date and mention the effective date from 1st April 2021.
Rental Agreement is not mandatory for claiming HRA tax exemption but rent receipts are required. I strongly recommend having a rent agreement in place if you are paying rent.

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Ashok N

Ashok N (Querist)

15 March 2022 That means on the stamp paper dated suppose 15th mar2022 I can make the rent agreement for the period Apr 2021 to Mar2022? It will be acceptable to AO if I get notice?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 March 2022 Yes, the date of agreement should be 15th March 2022.

CA Puja Sharma

CA Puja Sharma (Expert)

16 March 2022 The date of the agreement will be the current date but in the content, you can mention that the agreement will be taken as effective from 1st April 2021

Ashok N

Ashok N (Querist)

16 March 2022 Okay got it thank you !!!!

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