Rent receipt sufficient to prove payment of tax or filing of tax

06-Apr-2023 (In Tax Law)
Recently I've given my flat for rent. The licensee has Request to acept rent by cash monthly and issue rent receipt. Is it ok to take cash and issue recipet for tax filling and hope there will be no litigation arising whatssoever legally. Is rent recipt sufficient to prove payment for tax and legal purposes
Answers (2)

Answer #1
746 votes
From your query understand that you have rented a residential flat for residential purposes and there is no ongoing litigations hence giving reply accordingly
Cash or bank transfer doesn't matter as long as you are paying appropriate taxes and the same is accurately reflected in your Returns.
When I say taxes I mean only income tax as GST is not applicable on Renting of immovable property for non commercial purposes.
Just ensure that the rent receipts, registered agreement and your income tax returns have same figures, there should not be an issue.
Answer #2
949 votes
It's depned upon you amount ? How much amount you are receiving in cash ?? Which type of rent receipt he want? You have answered this question then I will guide you on this
Such rent income comes under income tax act 1961 so while doing yours yearly income tax return..

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