Have you ever thought what is the advantages of having a house rent agreement? The House rent agreement is not only a legal agreement between you and your house owner but also works as a residential proof.
Important facts – House Rent Agreement
The rent agreement is very beneficial for us. It is one of the important thing which helps you to get tax rebate. So, this article helps you few important facts which showing the advantages of house rent agreement.
Must Read: How to file online Income Tax Return
Why Rent agreement is necessary?
When you take a home on the rent, then you must have to make a house rent agreement. This rental agreement is an important document which certifies that you are hiring on a particular property of someone else and paying against the monthly rent. The House rent agreement is also works as your residence proof. You know very well about the importance of rent agreement. If you don’t have a rent agreement, tenants have difficulty in getting vehicle finance, getting gas connections, opening bank account and many more. But if you have rent agreement then you will get tax deduction for all those peoples who are living on rent.
Get Tax Rebate
If you live in a rented house, then you can take benefit of tax rebate of House Rent Allowance (HRA) under Section 10 (13A) as per the Income Tax Act. If you do not have a verified rent agreement then you are not able to get the benefit for claiming the rebate in income tax exemption.
Helps for new gas connection
If you need to apply for new gas connection then you must have to submit address proof, id proof, passport size photo. If you take a home on the rent, then you must have to submit house rent agreement as a address proof.
Helps for making passport
If you want to apply for passport for you or family members, then you must have to submit rental agreement as a address proof which is one of the required mandatory document. If you submit, your rental agreement as a address proof then police verification process very fast and easy.
Make online rent payment
Most of the person do the rent payment in cash at the place of check or online transfer. Sometime, Income tax department demand the proof for rent payment. So, it is advisable that you have to use online payment method or use check system to payment the rent. It is very useful and solid proof to get get the benefit in income tax.
Parental Home for staying
If someone live in his parent’s house and give the monthly rental then they are able to claim for discount. You should fill the yearly rental detail during filling online income tax return. But if you don’t have any valid proof then you are not eligible to get the discount.
Must Read: Can I file ITR return Without ITR Form 16 ?
Buy New Vehicle
As per the RTO, if you are living in a rental house and want to buy new vehicle registration, then it’s mandatory to submit the house rental agreement.
For Any Loan
Most of the time a person who live in rental home need to apply for any loan. In that situation bank need the address proof at current location where you live. So, you must have to submit your home rent agreement as a address proof which helps you to get the approval for loan.