The Payment Received Letter is a crucial document in Pakistani business and financial transactions, used to formally acknowledge the receipt of payment between parties. This document is particularly important in Pakistan's legal framework, where written documentation of financial transactions holds significant weight under the Contract Act 1872 and related financial regulations. The Payment Received Letter serves multiple purposes: it provides legal proof of payment, helps maintain accurate financial records, supports tax compliance, and can be used as evidence in case of future disputes. The document should include specific details about the payment, parties involved, and purpose of payment, while adhering to local documentation requirements. It's commonly used in both business-to-business and business-to-individual transactions, and may require stamp duty depending on the transaction value and nature.

1. Letter Header: Including date, reference number, and formal letterhead if from a business

2. Recipient Details: Full name and address of the person/entity who made the payment

3. Payment Details: Specific amount received, date of receipt, and payment method

4. Purpose of Payment: Clear statement of what the payment was for, including any relevant invoice or contract references

5. Confirmation Statement: Explicit acknowledgment that the payment has been received in full satisfaction

6. Signature Block: Signature, name, and designation of the person issuing the receipt