Calculate HRA ExemptionWhy Do You Need a Rent Receipt?
A Rent Receipt is a documented proof of rent payment made by a tenant to a landlord. Salaried employees in India must submit these receipts to their HR departments to claim House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act. Without valid rent receipts, your HRA becomes fully taxable, significantly reducing your In-Hand Salary.
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Crucial HRA Exemption Rules (FY 2026-27)
- Rent exceeds ₹1,00,000 annually: The Landlord's PAN is strictly mandatory. If they don't have a PAN, a written declaration is required.
- Revenue Stamp: A ₹1 revenue stamp must be affixed and signed across by the landlord only if the rent is paid in cash and exceeds ₹5,000 per receipt. For online transfers (NEFT/UPI/Cheque), a revenue stamp is not legally required.
- Old vs New Regime: Remember, you can only claim HRA tax benefits if you opt for the Old Tax Regime. Compare your tax liability using our Income Tax Calculator.
HRA Exemption Calculation (Quick Reference)
| Condition | Exemption Amount |
|---|---|
| Least of the three: | Actual HRA received |
| Rent paid minus 10% of Basic Salary | Rent paid - 10% Basic |
| 50% of Basic (Metro) or 40% (Non-Metro) | 50%/40% of Basic |