Rent Agreement for the lock down period

234°
Deal Cadet
newmagic

Dimers have always helped to saved some hard earned  money..
so may be if some legal or CA dimer can help please
My employer requested a Rent Agreement as a compulsory condition to get HRA benefit, where the rent agreement should clearly specify the duration of the period exemption is claimed i.e from 1st April 2020 onwards .

Now my query is – During the period starting from nationwide lock down from 24th March 2020 till Unlock 1.0 started from June 1,2020  – most of the sub registrar office and notary services were suspended so legal rent agreement work was NOT done in most of the courts/sub registrar office. Want to know if there is any verdict from any court or any other law which provides exemption that if a rent agreement created on a later date can cover the entire HRA claimed period starting 1st April.


What and how I should do to satisfy my employer condition of rent agreement with start date of specified period..

24 Comments  |  
13 Dimers
  • Sort By
Deal Subedar Deal Subedar
Link Copied

I don’t think you will face any issues if you try to make a rent agreement starting April-20 to Mar-21 or whatever period you require even now.

Deal Lieutenant Deal Lieutenant
Link Copied
igen wrote:

I don’t think you will face any issues if you try to make a rent agreement starting April-20 to Mar-21 or whatever period you require even now.

Agree

Deal Subedar Deal Subedar
Link Copied

If your employer asking for rent agreement don’t give it if it’s too much of a hassle.. You can claim the HRA without any agreement in your return

Deal Cadet Deal Cadet
Link Copied
igen wrote:

I don’t think you will face any issues if you try to make a rent agreement starting April-20 to Mar-21 or whatever period you require even now.

You can get the agreement made any time during the year, wont be an issue
however agreement is only required if your rent is above 1.5L a year accordind to law

Deal Cadet Deal Cadet
Link Copied
adnan_d92 wrote:

If your employer asking for rent agreement don’t give it if it’s too much of a hassle.. You can claim the HRA without any agreement in your return

Upto 50k PA no proof
Upto 1L PA rent Reciept
upto 1.5L PA rent reciept with pan card of owner
1.5L+ Compulasry registered rent agreement

Deal Subedar Deal Subedar
Link Copied
Expand
karanoshan wrote:

Upto 50k PA no proof
Upto 1L PA rent Reciept
upto 1.5L PA rent reciept with pan card of owner
1.5L+ Compulasry registered rent agreement

Which law/rule states this?

Deal Cadet Deal Cadet
Link Copied
Expand
adnan_d92 wrote:

Which law/rule states this?

You will be able to find it on income tax site
However i am sure of this

Deal Cadet Deal Cadet
Link Copied
Expand
karanoshan wrote:

You can get the agreement made any time during the year, wont be an issue
however agreement is only required if your rent is above 1.5L a year accordind to law

@whitewalkers @igen
If we go for rent agreement now as per me
Agreement Execution date – 31st Dec 2020
Agreement Commencement date – 1st April 2020

I searched on net and found that the commencement of an agreement cannot start before the execution date –
“The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it
Found here
https://www.lawdepot.com/blog/what-does-effecti...

If I make a rent agreement now can we get a mutually (between owner and tenant ) agreed retrospective dates clause mentioned there-in, specifying the tenancy/commencement for this agreement started backdated from 1st April 2020 . Or what could be a better legally acceptable clause that can be inserted so as to make its usability to claim HRA starting 1st April 2020

Deal Cadet Deal Cadet
Link Copied
Expand
newmagic wrote:

@whitewalkers @igen
If we go for rent agreement now as per me
Agreement Effective date – 31st Dec 2020
Agreement Commencement date – 1st April 2020

I searched on net and found that the commencement of an agreement cannot start before the execution date –
“The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it
Found here
https://www.lawdepot.com/blog/what-does-effecti...

If I make a rent agreement now can we get a mutually (between owner and tenant ) agreed retrospective dates clause mentioned there-in, specifying the tenancy/commencement for this agreement started backdated from 1st April 2020 . Or what could be a better legally acceptable clause that can be inserted so as to make its usability to claim HRA starting 1st April 2020

Dont know law about this
However done this practically, also know many people who did the same
No issues
My friend even got a fake landlord for agreement for 5k

Deal Cadet Deal Cadet
Link Copied
Expand
newmagic wrote:

@whitewalkers @igen
If we go for rent agreement now as per me
Agreement Execution date – 31st Dec 2020
Agreement Commencement date – 1st April 2020

I searched on net and found that the commencement of an agreement cannot start before the execution date –
“The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it
Found here
https://www.lawdepot.com/blog/what-does-effecti...

If I make a rent agreement now can we get a mutually (between owner and tenant ) agreed retrospective dates clause mentioned there-in, specifying the tenancy/commencement for this agreement started backdated from 1st April 2020 . Or what could be a better legally acceptable clause that can be inserted so as to make its usability to claim HRA starting 1st April 2020

@karanoshan Any idea on this ? Have you tried creating a rent agreement during the later part of the year with backdate as commencement date agreed between both parties .

Deal Cadet Deal Cadet
Link Copied
Expand
newmagic wrote:

@karanoshan Any idea on this ? Have you tried creating a rent agreement during the later part of the year with backdate as commencement date agreed between both parties .

Yes

Deal Cadet Deal Cadet
Link Copied

@karanoshan Can you share/PM me a legally acceptable clause that can be inserted into the agreement now so as to make its usability to claim HRA starting 1st April 2020.
Thanks in advance

Critic Critic
Link Copied

Your employer has asked for an “agreement” not a “registered agreement”. An agreement on stamp paper is valid even if it is not registered. And for an unresgistered agreement, as long as both parties agree, the effective date can always be different from the date of signature. The wordings can be such that the agreement is being made to formalise an earlier verbal agreement.

Deal Subedar Deal Subedar
Link Copied
Expand
newmagic wrote:

@whitewalkers @igen
If we go for rent agreement now as per me
Agreement Execution date – 31st Dec 2020
Agreement Commencement date – 1st April 2020

I searched on net and found that the commencement of an agreement cannot start before the execution date –
“The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it
Found here
https://www.lawdepot.com/blog/what-does-effecti...

If I make a rent agreement now can we get a mutually (between owner and tenant ) agreed retrospective dates clause mentioned there-in, specifying the tenancy/commencement for this agreement started backdated from 1st April 2020 . Or what could be a better legally acceptable clause that can be inserted so as to make its usability to claim HRA starting 1st April 2020

Yes you can. I’ve seen them being made. Ignore websites that give generic information on legal matters, there are many provisions in law and many exceptions/exemptions.

It is a very simple agreement can be either registered or on a simple stamp paper which can be then notorised (will depend on annual rent). You need not mention any special clause just make sure the period for lease/rent should be specifically mentioned April-2020 to whatever month you require.

Deal Lieutenant Deal Lieutenant
Link Copied

Can anyone send latest rent agreement format?

Claiming HRA @ 15k/month with rent receipts as proof will suffice? Or agreement is reqd? If so, making today is ok for ay 21-22? Payment will be done from now only till March as 3×15 annual payment as 15×12?

Any points to consider?

Deal Subedar Deal Subedar
Link Copied

What if we were not paying rent as of now and pay whole amount in one transfer ? Like transfer of 90k one time assuminh 15k pm rent for 6 month. Will it work ?

Deal Subedar Deal Subedar
Link Copied
Expand
karanoshan wrote:

Upto 50k PA no proof
Upto 1L PA rent Reciept
upto 1.5L PA rent reciept with pan card of owner
1.5L+ Compulasry registered rent agreement

no, it all depends upon the company.

Deal Subedar Deal Subedar
Link Copied
ItsBetter wrote:

What if we were not paying rent as of now and pay whole amount in one transfer ? Like transfer of 90k one time assuminh 15k pm rent for 6 month. Will it work ?

It all depends on the HR/Accounts team person.
Usually they look for rent receipts of 3 (before 31dec20) + rental agreement (not all companies ask for it). So total 4 attachments in the HR portal.
They don’t care how you have paid them.

Rental agreement means, the agreement between landlord and tenant with PAN details printed and signed by both parties on Rs20 stamp paper. No need to register it.

Deal Cadet Deal Cadet
Link Copied
Expand
igen wrote:

Yes you can. I’ve seen them being made. Ignore websites that give generic information on legal matters, there are many provisions in law and many exceptions/exemptions.

It is a very simple agreement can be either registered or on a simple stamp paper which can be then notorised (will depend on annual rent). You need not mention any special clause just make sure the period for lease/rent should be specifically mentioned April-2020 to whatever month you require.

Thanks …Do you have a rent agreement template that you can share please ?

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
newmagic wrote:

@whitewalkers @igen
If we go for rent agreement now as per me
Agreement Execution date – 31st Dec 2020
Agreement Commencement date – 1st April 2020

I searched on net and found that the commencement of an agreement cannot start before the execution date –
“The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it
Found here
https://www.lawdepot.com/blog/what-does-effecti...

If I make a rent agreement now can we get a mutually (between owner and tenant ) agreed retrospective dates clause mentioned there-in, specifying the tenancy/commencement for this agreement started backdated from 1st April 2020 . Or what could be a better legally acceptable clause that can be inserted so as to make its usability to claim HRA starting 1st April 2020

Call nobroker and confirm once

Deal Lieutenant Deal Lieutenant
Link Copied

Also this year will face new chalange as many people are paying rent through credit card and not sure how company will accept it for HRA

Tech Guru Tech Guru
Link Copied

Most people are staying at home, claim rent paid to your parents smile
One simple hack to decrease your tax liability and this time ITD won’t raise eyebrows as you are actually working from home biggrin

Deal Cadet Deal Cadet
Link Copied
Original wrote:

Most people are staying at home, claim rent paid to your parents smile
One simple hack to decrease your tax liability and this time ITD won’t raise eyebrows as you are actually working from home biggrin

Can you know for fy19-20, I declared less rent so while filing ITR can we increase this because of less rent I am liable to pay 12.5k.

Missing