When Is A Revenue Stamp On A Rent Receipt Necessary?
When should a revenue stamp be placed on a rent receipt? Why is it necessary? We clarify... To collect taxes for the provision of specific services, the government issues revenue stamps. Revenue stamps, which resemble postal stamps in appearance, are a type of label produced by the government for the purpose of collecting taxes or fees. They are used in documents such as cash receipts, tax payment acknowledgements, rent receipts, and so on.
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A "stamp" is defined as any mark, seal, or endorsement by any agency or person lawfully authorized by the state government for the purposes of duty charged under the Act. This includes an adhesive or impressed stamp. Let's find out where the revenue stamp can be applied now.
When is a revenue stamp required?
When a receipt is present, a revenue stamp must be attached. This includes notes, memos, and other writing like:
receiving cash, a check, a bill of exchange, or a promissory note.
acknowledging the receipt of tangible property as payment for a debt.
acknowledgement of any obligation, demand, or portion thereof that has been paid off or cancelled.
Where can I purchase a revenue stamp?
The neighbourhood post offices sell revenue stamps. Each revenue stamp costs Re 1, making them inexpensive. These days, regional stores and certain internet marketplaces also stock revenue stamps & sell them for a premium over post offices. It is best to purchase it from the post office to reduce the possibility of receiving phoney stamps.
Does a rent receipt require a revenue stamp?
If the monthly rent is less than Rs 5,000, a revenue stamp is not necessary even if the rent is paid in cash. A revenue stamp must be placed on the rent receipt and the landlord must sign it properly if the monthly rent paid in cash exceeds Rs 5,000. Additionally, if the rent was paid by check, you do not need to stamp the receipt with the revenue stamp.
Stamp of Revenue on Rent Receipt
You must give the employer the proof of your rent payment if you wish to use the HRA benefit offered by your workplace. You must have the landlord's rent receipt in order to submit this confirmation.
The rent receipt should be filled out according to the approved format. Only after receiving the tenant's rent does the landlord issue the rent receipt. There is no requirement for a revenue stamp on the rent receipt if the rent was paid online or
with a check. When paying rent with cash, the rent receipt with a revenue stamp serves as documentary proof of the transaction. If the landlord and the tenant have a legal dispute, the rent receipt may be presented as evidence in court.
Rent receipt's revenue stamp value
On rent receipts where cash payments exceed Rs 5,000, you must affix a revenue stamp of Rs 1 value in accordance with the revision to Schedule-I to the Indian Stamp Act, 1899.
Rent receipt item with a revenue stamp
When a revenue stamp is applied, a rent receipt for a cash rent payment is valid and contains the following details:
A tenant's name
The landlord's name
The rental property's address
Rent amount
Rental period
Mode of payment – cash/online/cheque
Landlord's signature
The landlord's PAN number needs to be listed on the rent receipt if the annual rent amount exceeds Rs 1 lakh.
Information about additional fees, such as the water bill, power fee, etc.
If the amount of cash on a rent receipt exceeds Rs 5,000, a revenue stamp must be applied.
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