Accept ESigning Landlord Rent Receipt For Free

Landlords can send tenants rent receipts for online payments by printing and mailing them to the tenant or emailing them in a PDF format.

Rental income from a property in India is taxable as per an individual's tax slab rate. However, if the Gross Annual Value (GAV) is less than ? 2.5 lakh, zero tax would be applicable on rental income. Several deductions are available under the IT Act that reduces one's rental tax liability.

Under Section 194-I of the Income-tax Act, the rent payer needs to deduct a 10 percent TDS on any building or land. The TDS is levied if the rent paid exceeds Rs 2,40,000 per year. Individuals and Hindu Undivided Family (HUF) must deduct five percent TDS on rent if the amount exceeds Rs 50,000 per month.

The payment of rent in cash exceeding Rs 2 lakh in a financial year will be constituted as a violation of Section 269ST of the Income Tax Act, 1961, on the basis of a transaction from one event (payment of rent) by a person." Section 269ST prohibits an individual from accepting cash receipts above Rs 2 lakh.

When writing a rent receipt, you should include: The date the payment was received. The tenant's full name. The full name of anyone else who made the payment on behalf of the tenant. The name of the landlord or property manager receiving the payment. The rental property address and unit number.

Common examples of receipts include packing slips, cash register tape, invoices, credit card statements, petty cash slips, and invoices. Although the format for these forms may vary, they all serve the same purpose of documenting the time and value of a business transaction.

Naveen Wadhwa, DGM, Advisory & Research, Taxmann: ?HRA deduction can be claimed when rent is paid to family members, including wife and parents, provided the recipient of rent shows it as an income and declares it in the income tax return.

Yes, you can claim HRA without landlord PAN when your annual rent payment is less than Rs 1,00,000. However, it is mandatory to obtain your landlord PAN when your rent exceeds Rs 1,00,000.