Do you pay income tax under the old tax system? Then you can make a huge reduction in your taxable income. The manager of your company may have also asked you to give rent documents by e-mail. In such a situation, if you do not know how to fill the rent receipt? Then these tricks can be very useful for you.
Taxpayers filing ITR under the old tax system get tax exemption on the 'housing rent allowance' component of their salary. If you are an employee, your company will ask you to provide investment details as well as rent-related documents before issuing Form-16. This can be a rent agreement or rent receipt. If you have not used it yet, then just follow these 7 easy tips…
To fill out the Rent Receipt, you must know the name and PAN card number of your landlord.
If your rent is less than Rs 8,333 per month, then you will not need the PAN card number of the landlord. The PAN card of the landlord is required only if your annual rent is more than Rs 1 lakh.
A rent receipt is generally available at any stationery shop. If you do not have the rent receipt, then you can give the proof of rent on any cash memo ie bill katta.
It is mandatory to affix the receipt stamp you get from the post office on the rent receipt. At the same time, instead of monthly, you can also show the rent receipt ie 4 slips of the year as proof.
Apart from the rent receipt, there is another option of a rent agreement. It is mandatory to mention the rent in the rent agreement.
If you do not get the rent receipt, then you can ask for its format from your HR. Or you can download it from many online portals.
The amount spent on rent gets deducted from your total income. Decreasing this amount leads to a huge reduction in your taxable income.
