Is there any limit for House Rent to avail the Income Tax exemption in India without providing the receipts..?

I heard that if the House Rent is below Rs. 3000 per month then there is no necessity to provide the Rent Receipt to the company... Is it true..??? Is there any limit for House rent to avail the tax deductions while filing the Income Tax returns in India...?? If yes, how much can a salaried employee show in his Income Tax return to avail the exemption for House Rent without providing the rent receipts...??? Is it necessary to provide Rent Receipts to the company in which he is working while in the preparation of Form-16...???

Public Comments

1. It is mandatory to give copies of rent reciepts irrespective of the amount paid The HRA is calculated at lower of Actual HRA or Excess of Rent paid over 10% of Salary (Excluding HRA) or 50% (In case of Metro Residents) / 40% (In case of other residents) of the Basic Salary
2. You have got the wrong information. If u r claiming exemption for rent paid then u r bound to provide the receipt. There is no limit for House rent to avail tax deduction. But showing a higher amount as rent paid will not give u higher amount of exemptions from income to be taxable as HRA exemption is restricted to lower of the undermentioned 3. 1. Actual rent paid-10% of Basic salary 2. Actual HRA Received 3. 50% of Basic(in case of Metros), or 40% of Basic So u need not so much as house rent paid. If u r from a metro then show 60% of ur basic as Rent paid. if u r not from a metro then Show 50% of ur basic as rent paid. Another restriction is there, if u r showing rent paid more than Rs.10k per month then u need to deduct TDS from the payment. So if u r paying actually more than 10k, then Ok. Deduct TDS and pay the balance to him. If u r showing fake amount then better keep it below or equal to 10k. Hope u r satisfied with the answer. CA. Pradeep Kumar Sahu.