How to get the rent receipt from Paytm application?
Have you ever struggled to obtain your rent receipt in order to claim HRA? You certainly must have. Many salaried employees must have encountered this situation at some point in their careers.
As a tax saver, it’s critical that you understand the proper way to claim HRA rebates because submitting forged documents can land you in more trouble than help. According to recent judicial decisions, your tax assessing officer has complete authority to verify the authenticity of the documents you submit for HRA claims.
In this blog, we will show you how to get a legitimate Paytm rent receipt and everything you need to know about rent receipt HRA, its benefits, and more.
How to Get Rent Receipt on the Paytm Application?Following are the step to pay and get a rent receipt on the Paytm application:
A rent receipt is a document that records the tenant’s payment of rent to the landlord. The landlord issues it, and it can be used for legal or tax purposes.
A rent receipt includes important details such as the rent amount, date of payment, and transaction medium. This helps both parties keep physical records of the payments. It is a required document for resolving any rent payment disagreements. Furthermore, if you are eligible for an HRA tax exemption, you must keep your rent receipts.
Why do you need a Rent Receipt?A rent receipt serves as physical proof that rent has been paid. It functions as a legal document that validates the transfer of funds from a tenant to a landlord. A rent receipt is also required to claim a House rent allowance (HRA). You must show your employer a rent receipt as proof of rent payment. Employers provide the HRA tax benefit after verifying rent receipts.
What are the Components of a Rent Receipt?A valid rent receipt has the following components:
Most companies include a House Rent Allowance (HRA) as part of their CTC (cost-to-company). It assists them in meeting the cost of living on their own if the company does not provide them with housing. HRA is not only a benefit; it is also a tax break. You must submit a rent receipt to your organization’s HR department to be eligible for HRA. Your employer may require you to do it quarterly, semi-annually, or annually rather than monthly. The HR team must confirm that you have paid your rent before you can claim an HRA tax exemption.
What is House Rent Allowance or HRA?HRA, or house rent allowance, is an important component of a salary slip. It is the amount paid by the employer as part of the employee’s salary. In other words, HRA is the amount paid by an employer to an employee to cover their housing expenses. HRA provides tax benefits to employees who pay for housing. The allowance varies according to salary and city of residence.
HRA provisions are governed by Section 10(13A) of the Income Tax Act of 1961. The primary benefit of HRA is that it reduces total taxable income. As a result, HRA reductions help to reduce the amount of tax that the taxpayer must pay.
HRA is included in the salary breakdowns of both public and private sector organisations. Various sections of the Income Tax Act aid salaried, self-employed, and professional individuals and professionals in reducing their rent expenditure.
HRA for Self-Employed ProfessionalsSelf-employed individuals can also claim deductions and HRA tax exemptions for House Rent Allowance (HRA). They are eligible for benefits under Section 80 GG. This Section can also be used by salaried employees to claim HRA tax exemptions when they do not receive HRA.
HRA Tax Exemption for the Salaried EmployeesSection 10-13A of the Income Tax Act provides for HRA tax exemption. The deduction will be the lowest of the following:
HRA claims are subject to the following rules:
This means that the HRA tax exemption is only available if the following conditions are met:
Following are the conditions that must be met before filing the HRA exemption:
the employee must provide the following documents to claim HRA:
If the employee pays more than Rs 1 lakh in rent during the fiscal year, he or she must provide the PAN card details and a copy of the owner/landlord’s PAN details
The HRA can be calculated using the following variables:
HRA is an important component of a person’s salary. It is the total amount paid by employers to employees for lodging. The HRA contribution is tax deductible. As a result, calculating HRA becomes critical.
HRA is calculated using several factors, including the city of residence, rent paid, and actual HRA received.
Let’s look at an example to better understand the deduction.
Mr Ved’s monthly base salary is Rs. 1,000,000. The salary allowance is Rs. 90,000, and the HRA is Rs. 30,000. He pays a monthly rent of Rs. 25,000 for his Gurgaon rented home. His income tax deduction for HRA will be the least of the following:
Salary = base salary + DA = (100000+90000) * 12 = Rs. 22,80,000
HRA paid monthly at Rs. 30,000 or Rs. 3,60,000 per year
The monthly rent is Rs. 25,000, or Rs. 3,00,000 per year.
The amount that Mr Ved can deduct will be the least of the following scenarios:
Mr Ved’s deduction amount will be the smallest of the following scenarios:
The actual HRA payment is Rs. 3,60,000.
Because Gurgaon is a non-metro city, 40% of Rs. 22,80,000 is Rs. 9,12,000, and the salary is Rs. 2,28,000.
Rent paid – 10% salary = Rs. 3,00,000 – Rs. 2,28,000 = Rs. 72,000.
The smallest amount is Rs. 72,000. As a result, Mr Ved is eligible for a tax deduction of Rs. 72,000.
What is the Last Date to file ITR and claim HRA Exemption?The deadline for filing and submitting ITR (Income Tax Returns) for all salaried individuals who want to claim HRA tax exemptions, among other benefits, is July 31st of each fiscal year.
The deadline for self-employed individuals is;