A Rent Receipt is a simple way to document and confirm payments made on your home or apartment. As a landlord, you may be required, or asked, to provide a Rent Receipt to your tenants. Having transactions formalized in writing can help avoid any mistakes in the event a tenant pays in cash or bounces a cheque.
1) To protect against bad landlords
2) To maintain a clean rent history
3) The employer will give you exemption on HRA, based on these rent receipts. Your final tax liability will be calculated accordingly. Your TDS shall be adjusted so you don’t have to pay tax on HRA.
If the landlord does not provide the rent receipt, then, the tenant can generate beautiful and functional rent receipts, which he can print, get them signed from the landlord and submit to the company's HR department to avail HRA benefit.