One employee is paying monthly rent of Rs 10000 per month and he also have receipt for the same. But the employer does not recognize the proof of rent which the employee is producing and hence he is not allowing any exemption of HRA. you are suggersted to advice is it enough to submit rent reciept along with stamp to claim hra exemption ? or is it necessary to produce rent agreement by the employee...?
Employers often ask for proofs of payment of the rent in the form of rent receipts. Although there is a limit to the amount of rent that you should be paying before the employer can actually force the submission of rent receipts and the amount is Rs 3000. Thus if the rent paid is less than Rs 3000 the submission of rent receipts is not mandatory, otherwise submission of rent receipts is necessary for availing the HRA exemption.
Also, if the payment of rent is made by cash and the amount if more than Rs 5000, then on the rent receipt a revenue stamp of Rs 1 must be pasted and signed across by the landlord.
You should satisfy your employer by submitting rent receipt to claim Hra.Maximum employer would satisfy with the rent receipt if not then submit rental agremeent.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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