What are rent receipts?
A rent receipt is proof of the transaction of rent paid by a tenant to his/her landlord. Rent receipt(document) is provided by the landlord upon receiving the rent from the rentee and his signatures are placed on it. If you have received the rent receipt, you should keep them with the documents you care about. Rent receipts can be used for legal matters( in case any) or tax benefits if you are eligible.
Why rent receipts are required?
To claim a House rent allowance (HRA), it is necessary to provide evidence of the payment of the rent to the employer, rent receipts work as evidence. The employer can provide deductions and allowances after verifying the same. The HRA allowance is based on the rent receipts and will be calculated accordingly.
What are the elements of a rent receipt?
We can understand the elements of rent receipt by the following statement: “The transaction of rent happens between tenant & landlord on a certain date each month for a premise having an address and rent of xxx amount for the period of a month.” So, for each rent receipt to be valid, the following mandatory elements must be in into a rent receipt:
- Tenant Name (If you are the tenant, fill in your name)
- Landlord Name
- Amount of Payment
- Date of Payment
- Rental Period
- House Address (Rented Property)
- Signature of Landlord or Manager