Comprehensive Guide to HRA Tax Exemption & Rent Receipts
Claiming House Rent Allowance (HRA) is one of the most effective ways for salaried individuals in India to lower their taxable income under Section 10(13A) of the Income Tax Act. To validate this claim, employers require you to submit structured, monthly or quarterly rent receipts. Our free generator builds compliant PDF receipts ready for submission.
How is HRA Exemption Calculated?
The tax-exempt portion of your HRA is calculated as the least of the following three values:
- 1. The actual House Rent Allowance (HRA) received from your employer.
- 2. Actual rent paid minus 10% of your basic salary (including Dearness Allowance, if applicable).
- 3. 50% of your basic salary if you reside in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% for non-metro cities.
Mandatory Proof Checklist
📄 Landlord PAN Card
If your annual rent payments exceed ₹1,00,000, you must submit your landlord's PAN. If your landlord does not have a PAN, a signed declaration using Form 60 is required to claim the tax exemption.
📌 Revenue Stamps
If you pay rent exceeding ₹5,000 in cash, a ₹1 revenue stamp must be affixed to the rent receipt, and the landlord must sign across it. For digital transactions (bank transfer, UPI, credit card), stamps are not legally required.