Rent Receipt Generator

Claiming House Rent Allowance (HRA) exemption is one of the most effective ways for salaried employees to lower their taxable income in India. To claim HRA successfully, proper documentation in the form of verified rent receipts is mandatory.

1. HRA Exemption Legality: Section 10(13A)

Under Section 10(13A) of the Income Tax Act, 1961, the HRA exemption is calculated as the minimum of:

1. Actual HRA component received from employer.
2. 50% of Basic + DA for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros.
3. Actual rent paid minus 10% of Basic Salary + DA.

2. Critical Compliance: The ₹1 Lakh PAN Rule

If total annual rent paid exceeds ₹1,00,000 (which is ₹8,333/month), the employee must declare the PAN of the landlord to the employer. If the landlord does not have a PAN, a signed declaration in Form 60 must be provided.

3. When is a Revenue Stamp Mandatory?

Under the Indian Stamp Act, if rent is paid in Cash and exceeds ₹5,000 per receipt, a ₹1 revenue stamp must be affixed and signed across by the landlord. For online bank transfers, UPI, or cheques, a revenue stamp is standardly not mandatory.

4. Frequently Asked Questions