How to claim HRA with rent receipts: a step-by-step guide

If your salary includes house rent allowance (HRA) and you pay rent, part of that allowance can be tax-free. Many people lose this saving simply because they submit their proofs late or miss a document. Here's how it works and what to do, step by step.

Can you claim HRA?

You can usually claim the HRA exemption if all of these are true:

• Your salary includes an HRA component. Check your salary slip.
• You actually pay rent for the home you live in.
• You've chosen the old tax regime. The HRA exemption isn't available under the new regime.

Not sure which regime suits you? Our income tax calculator compares both, with your HRA included.

If you live in a home you own, there's no rent, so there's nothing to claim. If you pay rent but your salary has no HRA component, talk to a tax professional, since a different deduction may apply.

How the tax-free amount is worked out

The exempt part of your HRA is the lowest of these three figures, worked out for the year:

1. The HRA your employer actually pays you.
2. A share of your salary: 50% if you live in a city that counts as a metro, 40% elsewhere.
3. The rent you pay, minus 10% of your salary.

Here, "salary" means your basic pay plus any dearness allowance, not your full salary.

Which cities count as metros? From April 2026 (FY 2026-27), eight: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. The last four were added by the Income-tax Rules, 2026, so for FY 2025-26 and earlier they still count at 40%.

A worked example

Say you live in a metro city and each month you get:

The three figures are:

1. HRA received: ₹2,40,000
2. 50% of salary: 50% of ₹6,00,000 = ₹3,00,000
3. Rent minus 10% of salary: ₹2,16,000 − ₹60,000 = ₹1,56,000

The lowest is ₹1,56,000, so that much of your HRA is tax-free. The remaining ₹84,000 is taxed as part of your salary.

The documents your employer needs

• Rent receipts, usually one per month, each signed by your landlord.
• Your landlord's PAN, if the rent you pay is more than ₹1,00,000 a year. That's about ₹8,334 a month.
• A revenue stamp on any receipt for more than ₹5,000 paid in cash, signed across by your landlord.
• Your rent agreement, which some employers ask for too.

Pay rent by bank transfer or UPI when you can. It gives you a clear record of every payment if anyone asks.

Make all your rent receipts at once

You don't need to write twelve receipts by hand. Our free rent receipt generator makes a receipt for every month of the financial year in one PDF, with your landlord's PAN, the amount in words and a signature line. It adds a revenue stamp box automatically for cash payments over ₹5,000. Print it, ask your landlord to sign each receipt, and submit.

When to submit

Employers collect proofs on their own schedule, often once near the end of the financial year (January to March) and sometimes quarterly. Watch for the email from your HR or payroll team, because missing their deadline means more tax is deducted from your salary.

If you do miss it, you can usually still claim the HRA exemption yourself when you file your income tax return under the old regime. Keep all the documents safe in case the tax department asks for them.

Common questions

Can I pay rent to my parents and claim HRA? Generally yes, if they own the home and declare the rent as income in their own tax return. Pay them by bank transfer so the payments are on record.

What if my landlord doesn't have a PAN? Ask your employer what they need instead. Usually it's a signed declaration from the landlord.

Is HRA available under the new tax regime? No. If you've chosen the new regime, rent receipts won't reduce your tax.

This guide covers the general rules. Your employer's payroll team or a tax professional can confirm how they apply to you.