Is It Necessary to Collect Rental Agreements Along with Rent Receipts for Tax Proofs?

Hi All,

Happy 2008!

It is the time for us to collect the investment proofs for the accounting year 2007-08. I have a query about collecting the rental agreement by the employees, along with the rent receipts. 😊 Is it mandatory to collect the rental/lease agreement? If yes, can you please give the details of any such circulars by the IT Dept? Your answers are very valuable.

Regards,
Smitha.V.A

At times, it also happens that people don't make rent agreements. This culture is mainly popular in apartments, so you can ignore rent agreements and ask for rent receipts.

Thank you.

My friend purchased a receipt book, used to put imaginary rent amount, and used to sign it as received Rs.XXX as rent, i.e., as the house owner himself. Lots of people do this to save tax. There is nothing new in this; just accept what you get.

Thanks.