Claiming House Rent Allowance (HRA) can significantly reduce your taxable income if you're paying rent for residential accommodation and your salary package includes HRA. It is important to provide & maintain the following documents to claim HRA:
Documents Required -
1. Rent Agreement: A copy of the lease or rental agreement between the employee and the landlord. This document should clearly mention the rental period, monthly rent amount, and any other terms and conditions agreed upon.
2. Rent Receipts: Original rent receipts for the months you are claiming HRA. The receipts should ideally include:
- The amount of rent paid
- The period for which rent is paid
- Signature of the landlord
- The name and address of the residence for which rent is paid
- Revenue stamp, where applicable
3. PAN Card of the Landlord: If the rent exceeds Rs. 1,00,000, the landlord’s PAN is usually required. If the landlord does not have a PAN or refuses to provide it, a declaration to this effect may be needed, along with the landlord’s details.
4. Bank Statements: Bank statements are also required as proof of rent payment. This is especially true for transactions that need to be traced for verification.
5. Declaration Form: A declaration form provided by the employer, filled out by the employee, stating the rent paid, landlord details, and any other necessary declarations.
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