Major Benefits of House Rent Receipts (HRR)

First of all why do we need house rent receipts and what are the major benefits of HRRs?
 

The house rent is probably one of the biggest monthly expense. Most tenants, especially those who pay rent in cash, may not realize that why rent receipts are important and how they can be used to save tax. Achal Sampattis lets you generate template based rent receipt.

Let us look at some of the major benefits of house rent receipt :

    Rent receipts save you from legal disputes

 
    A house rent receipt serves as a proof that you've paid your rent .In the event of any legal dispute between you and landlord regarding non-payment of rent ,you can show your rent receipts to prove your innocence .Additionally ,rent receipts also mention the date of payment ,in case the landord wrongfully asks you for late payment fine.
   

 Rent receipts for HRA tax exemption
 

    If you are a salaried individual ,you can use rent receipt to claim House Rent Allowance (HRA)tax exemption under Section 10 (13A) of the IT Act .The deduction you can claim will be lowest of the following :

        -The HRA given by your employer
        -50% of your salary if you live in a Metro city
        -40% of your salary if you live in any other city
        - The actual rent you pay minus 10% of your basic salary and dearness allowance

    If you are a self-employed individual ,you can avail tax exemption under Section 80GG