Why you should not be giving out Rent Receipts?
Come month of January and house owners start getting request from their Licensees (Yes, they are not tenants!, more on this later) for Rent Receipts. Owners without thinking go to Google, type Rent Receipt Format, and download the first one that looks legal type because a section of Income Tax Act is mentioned (something like the pic below). They buy a revenue stamp and fill the details and send it to their Licensees.
The problem is that the house was not given on rent, in strictly legal terms and it matters. It matters because the house was given on a leave and license basis as per Section 24 of Maharashtra Rent Control Act, 1999. Issuing rent receipts, instead of Leave and License Fee Receipt could be used by scrupulous elements against you in court of law. This can result in myriad issues such as tenancy rights and non-eviction as tenancy laws are hugely favourable to tenants and give them right to stay till they choose to, in short you cannot issue them notice of termination. If you have heard of the pagdi system, and problems associated with it, which is what we are talking about.
Azuro: The right way to issue rent receipts
At Azuro, our property managers assure that our clients send the right receipt to their Licensors. We ensure that clients using our property management services have thorough compliance with the law even on very small details. We strive to ensure your property is in safe hands and you can get it back without any trouble. These small things like the right format of receipt can seem like doing too much, but given the laws it’s better to err on the side of caution than lose your property.
Need a Leave and License Fees Receipt format? You can download from here.
References:
https://coporatelaws.wordpress.com/2010/04/21/concept-of-leave-and-license-under-indian-law/
