Loading...
HRA (House Rent Allowance) is one of the biggest tax-saving opportunities for salaried employees in India — yet most people don't claim it properly, leaving thousands of rupees on the table. Here's everything you need to know, with a free tool to generate your rent receipts.
Your HRA exemption is the lowest of these three values:
Actual HRA Received
The exact HRA amount your company pays you (as per salary slip)
50% / 40% of Basic Salary
50% for metro cities (Delhi, Mumbai, Kolkata, Chennai) · 40% for all other cities
Rent Paid minus 10% of Basic
Monthly Rent × 12 − 10% of Annual Basic Salary
Example: ₹50,000 basic, ₹20,000 HRA, ₹15,000/month rent (Non-metro)
Rent below ₹8,333/month (less than ₹1 lakh/year)
Landlord PAN not required. Just submit rent receipts.
Rent above ₹8,333/month (more than ₹1 lakh/year)
Landlord PAN is mandatory. If landlord doesn't have PAN, get a written declaration signed by them.
Generate Rent Receipts
Use KuchhBhi's free Rent Receipt Generator to create month-by-month receipts for the full financial year (April to March).
Get Landlord's Signature
Print the receipts and get them signed by your landlord. If rent > ₹5,000/month, paste a ₹1 revenue stamp before signing.
Collect Landlord's PAN (if applicable)
If your annual rent exceeds ₹1 lakh, collect a PAN copy or declaration from your landlord.
Submit to HR Before Deadline
Submit receipts + landlord PAN to your HR/payroll team. Most companies ask in December–January for the investment declaration.
Claim in ITR (if missed employer declaration)
If you missed submitting to HR, you can still claim HRA exemption while filing your Income Tax Return (ITR-1 or ITR-2).
Generate Your Rent Receipts in 60 Seconds
Free · All months at once · Print-ready PDF · HRA-compliant format
Open Rent Receipt GeneratorCan I claim HRA even if I pay rent to my parents?
Yes, you can pay rent to parents and claim HRA — but the rent must be genuinely paid, and your parents must show it as income in their ITR. A formal rent agreement and bank transfer are advisable.
Can I claim HRA if I own a house in another city?
Yes. If you own a house in City A but are working and renting in City B, you can claim HRA for City B. You can also claim home loan deductions for City A simultaneously.
Is HRA available in the New Tax Regime?
No. HRA exemption is only available under the Old Tax Regime. If you opt for the New Regime, you cannot claim HRA. Factor this in before choosing your regime.
What if I don't have a formal rent agreement?
While a rent agreement strengthens your case, it's not mandatory for HRA. Signed rent receipts with landlord details are generally sufficient for employer declarations. For ITR scrutiny, a rent agreement helps.
Related Finance Tools