Is Rent Agreement required for claiming HRA exemption ?

POSTED BY Shubhasis ON December 10, 2013 10:38 am COMMENTS (2)

Hi Manish.

I am a software engineer by profession living in Durgapur a town in West Bengal. I am claiming 8000/month as rent given to my tenant and giving the rent receipt as a proof. But my company\’s CA is telling that i need to show Rent Agreement if the rent paid is >4999.

I know about the recent PAN card mandatory of Tenant if the annual rent paid is >1lac. But i have not seen any requirement of the rent agreement. Is it really needed? Can you help me out? Thanx in advance

2 replies on this article “Is Rent Agreement required for claiming HRA exemption ?”

  1. Anshuk Jain says:

    Shubhasis, ask a citation from your company’s CA. He just can’t invent rules from thin air.

  2. ashalanshu says:

    Dear Subhasis, Rent agreement is not necessary as per law but your DDO (Drawing and Disbursal officer) may demand necessary proofs to give you the benefit of lower TDS. Hence in your case if your employer’s Ca insists for proof of rent agreement, you should submit the one.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.