Rent Receipt Generator

Rent receipts are mandatory for claiming HRA exemption if the annual rent paid exceeds Rs. 1 lakh (approximately Rs. 8,333 per month). For rent below this threshold, while not strictly mandatory, it's advisable to maintain receipts as proof. Employers typically require rent receipts along with the rental agreement for processing HRA claims.

A valid rent receipt must include: Tenant's name, landlord's name and address, property address, rent amount in words and figures, payment period (month and year), date of payment, payment mode (cash/cheque/bank transfer), landlord's signature, and revenue stamp (Re. 1) for cash payments. If annual rent exceeds Rs. 1 lakh, landlord's PAN is mandatory.

Landlord's PAN is mandatory when the total annual rent paid exceeds Rs. 1,00,000. This is required by the Income Tax Department to verify the landlord's income declaration. If landlord doesn't have PAN, they must provide a declaration in Form 60 along with their Aadhaar number. Without landlord PAN, HRA exemption may be denied.

For HRA exemption claims, you need rent receipts for each month you're claiming. Most employers require monthly receipts. For tax filing purposes, quarterly receipts are also accepted, but monthly receipts are preferred as they provide better documentation. Ensure the receipts cover the entire period for which HRA is claimed.

TallyPrime's payroll module automatically calculates HRA exemption based on the three conditions: actual HRA received, 50%/40% of basic salary, and rent paid minus 10% of salary. It maintains records of rent declarations, generates Form 12BB for employees, and ensures correct TDS deduction. This automates HRA compliance for employers.