Why you need rent receipts
Salaried employees who live in rented homes can claim an HRA exemption under the old tax regime. Employers usually ask for rent receipts as proof before the financial year ends, otherwise extra tax is deducted from your salary.
Rules to remember
- Landlord's PAN is mandatory if your total rent is more than ₹1,00,000 in the year (₹8,333 a month).
- Rent paid in cash above ₹5,000 per receipt traditionally carries a ₹1 revenue stamp signed by the landlord. Paying by bank transfer or UPI gives you a stronger record.
- Each receipt should show the tenant, landlord, address, period, amount and the landlord's signature.
- You can't claim HRA for rent paid to your spouse. Paying rent to parents is allowed if they own the home and declare the rent as income.
- HRA exemption is not available under the new tax regime.