Rental Agreement Tax Exemption

  • October 4, 2021

A valid lease between the lessor and the tenant (in this case the employee) is a necessary document to submit to the employer to benefit from the tax advantage. The contract must contain all the specific details about the type of accommodation, the rent to be paid, the duration of the rental, etc. Beyond the normal arithmetic of tax plates, cess and supplements, the worker can claim the benefit of the HRA exemption and satisfy his search for a higher take-home salary. Let`s take a look at the dynamics of the HRA element in each taxpayer`s salary and how it can be managed to get tax exemptions. In order to grant the worker a tax exemption, the employer requires that appropriate proof of rent be provided. At least three months of rental receipts are required to be presented by the worker. . . .