1. The Fundamental Legal Difference
| Parameter | Rent Agreement | Rent Receipt |
|---|---|---|
| Legal Nature | Contract establishing tenancy relationship | Voucher acknowledging financial consideration |
| Signatories | Both Landlord and Tenant (+ witnesses) | Landlord only |
| Stamp Duty | State non-judicial stamp paper (₹100 to 0.5%) | ₹1 Revenue Stamp (if cash > ₹5,000) |
| Frequency | Once per tenure (typically 11 months) | Every month or quarterly |
2. What Does Employer HR Demand for Form 12BB?
- Rent < ₹3,000 / month: Form 12BB declaration usually accepted without receipts.
- Rent ₹3,000 to ₹8,333 / month: Monthly rent receipts required; agreement optional.
- Rent > ₹8,333 / month (> ₹1 Lakh/year): Both Landlord PAN and Rent Receipts mandatory. Most employers also mandate the Rent Agreement.
- Rent > ₹50,000 / month: Tenant must deduct 5% TDS under Section 194-IB and submit Form 16C certificate.
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