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Rent receipt › Rent receipts for HRA
Rent receipts for an HRA claim
If your salary has House Rent Allowance (HRA) and you live in a rented house, part of the HRA can be free of income tax. Your employer gives that benefit only after seeing proof of the rent, and rent receipts are the main proof.
What your employer asks for
- Rent receipts for the months you claim, signed by the landlord.
- Landlord's PAN when the total rent for the year is more than ₹1,00,000. Without it the employer will usually not allow the HRA exemption above that.
- A rent agreement: many employers ask for it, and it is good to have one anyway.
- A declaration on Form 124 (which replaced Form 12BB from April 2026), or your employer's own form, listing the rent, the landlord's name, address, PAN and your relationship with the landlord.
Employers usually collect these proofs between January and March. If you miss the date, the employer cuts tax as if you had no HRA exemption. You can still claim it in your own income tax return, but you must keep the same proofs ready.
Old regime or new regime: this decides everything
| Old tax regime | New tax regime | |
|---|---|---|
| HRA exemption | Yes, worked out by the rule of three amounts | No |
| Rent receipts useful for salary tax? | Yes | No |
| Default for salaried people | Only if you choose it | Yes |
The new regime is the default. In it there is no HRA exemption, so rent receipts do not lower the tax cut from your salary. They help only if you choose the old regime. If you pay high rent and also have home loan interest, insurance, PPF and similar deductions, the old regime may cost less tax; otherwise the new one usually wins, especially since income up to about ₹12 lakh (₹12.75 lakh for salaried people with the standard deduction) has no tax in the new regime. Work out both, or ask your accountant, before you tell your employer which one you want.
Special cases
- Rent paid to parents. Allowed when you really pay it, the parent owns the house and shows the rent as income in their own tax return. Pay through the bank so there is proof. Since April 2026 you must also state your relationship with the landlord in the HRA declaration (Form 124) when the rent is above ₹1,00,000 a year.
- Rent paid to your husband or wife. Usually not accepted by the tax department, because spouses commonly live together. Ask your accountant first.
- Two people sharing a flat. Each makes their own receipts for their share of the rent.
- Rent above ₹50,000 a month. The tenant, even an individual, must deduct TDS from the rent and deposit it. Ask an accountant for the current rate and the form.
- No HRA in your salary (self-employed or HRA not part of pay): in the old regime there is a separate, smaller deduction for rent. Your accountant can tell you if you qualify.
Paying rent the safe way
Bank transfer or UPI leaves proof that matches each receipt. Cash is allowed, but if the tax department ever asks, the receipt is your only proof, and cash over ₹5,000 needs a revenue stamp on the receipt (see revenue stamp on rent receipts).