ARE RENT RECEIPTS MANDATORY FOR HRA EXEMPTION?

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To claim House Rent Allowance (HRA) exemption, rent receipts are generally required, as per CBDT Circular 4/2020. However, if obtaining receipts is difficult, such as when the landlord is an NRI, alternative proofs like a rent agreement, bank statements showing rent payments, or a declaration can be accepted. This is especially relevant when annual rent exceeds one lakh rupees, requiring evidence to be submitted.

TRUPTI NAINEKAR

TRUPTI NAINEKAR (Querist)

27 May 2020 ARE RENT RECEIPTS MANDATORY FOR HRA EXEMPTION OR RENT AGREEMENT IS SUFFICIENT?

CA Sindhu KJ

CA Sindhu KJ (Expert)

27 May 2020 Rent receipts are required

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

27 May 2020 Please refer page 27 of CBDT Circular 4/2020 dated 16-01-2020.

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TRUPTI NAINEKAR

TRUPTI NAINEKAR (Querist)

27 May 2020 What If the landlord is NRI we cannot take rent receipts from them due to their non availability and we have taken rent payment proof such as bank statement from the employees

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 May 2020 Any evidence can be shown as proof like Rent Payment Receipt, Agreement, Bank Statements or any certification or declaration on the same.

To bring certainty and uniformity, section 192(2D) provides that person responsible for paying (DDOs) shall obtain from the assessee evidence or proof or particular of claims such as House rent Allowance (where aggregate annual rent exceeds one lakh rupees);

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