Indian Real Estate

Guide to rental receipts in India - all the information you require


03, December 2025

Rental Receipt: What, Why, And Its Benefits Tenants Need To Know

More than 50% of people in India live in their own houses, while almost 30% live on rent and 13% in their parents' house, revealed the latest RICS. The research was carried out across 15 Tier 1 and Tier 2 cities in India.

In the next two years, rental housing could increase in Bangalore and all other major cities.

However, you need to know of these rent receipts before going out to pay your house rent to your landlord.

Tax tips: they serve as proof of residency and are crucial for claiming tax benefits.

Rent Receipt Format - Homes247

Why Do Tenants Require Rental Receipts?

A rent receipt is an official record of the rent that a renter has given to their house owner. It is significant in India since it can be used as a record of rental expenses for tax purposes and as evidence of payment.

Rental receipts are advantageous for tax reasons.-

Rental Receipts & Its Benefits In India

Rent receipts are official documents provided by landlords to tenants upon receiving rent payment. They serve as proof of the payment and specify the amount paid, rental period covered, and details of both the landlord and the tenant. These receipts are crucial for claiming tax benefits like House Rent Allowance (HRA).

Rental Receipt: A Tenant's Guide for Tier 1 Cities in India

Living in a Tier 1 city in India comes with its own set of challenges, and managing your rental expenses is one of them. But fret not, tenants! This blog is here to help you understand a key document in your rental journey: the rent receipt.

Why Is a Rental Receipt Important for Tier 1 City Tenants?

In fast-paced Tier 1 cities, keeping proper records is essential. Here's why a rent receipt is important for you:

  • Proof of Payment: The receipt serves as concrete evidence that you've paid rent. This can be crucial in case of any disputes with your landlord.

  • Tax Benefits: Many tenants in Tier 1 cities claim House Rent Allowance (HRA) from their employers. To claim this exemption, you'll need to submit rent receipts as proof of your rental expenses.

  • Record Keeping: Having a paper trail of your rent payments is a good financial practice. It allows you to track your spending and maintain accurate financial records.

How can a tenant defend an eviction by the landlord?

GRC Shreekrish - Homes247.in

Empowering Trust: Tenant Verification for Secure Homes in Faridabad

How To Get Rent Receipt

What Information Should a Rent Receipt Include?

A well-formatted rent receipt should typically include the following details:

  • Date of Issue: This establishes when the rent payment was received by the landlord.

  • Tenant Name: States who made the rent payment.

  • Landlord Name: Identifies who received the rent payment.

  • Property Address: Specifies the rented property for which the payment is made.

  • Rent Amount: Clearly states the amount of rent paid.

  • Rent Period: Defines the specific timeframe covered by the rent payment (e.g., month, quarter).

  • Payment Method: Mentions how the rent was paid (e.g., cash, cheque, online transfer).

  • Landlord's Signature: Verifies the authenticity of the receipt.

Additional Tips for Tier 1 City Tenants:

  • Always collect an original rent receipt from your landlord for every payment made.

  • Maintain a safe and organized system for storing your rent receipts.

  • If you pay rent electronically, request a digital receipt from your landlord for your records.

  • In case your landlord doesn't provide a receipt, politely request one. Most online rent payment platforms offer downloadable receipts.

Rent receipt for income tax purposes-

With the rent receipt, a salaried person will be able to get an exemption on their Form-16. It will also help in preventing additional issues when submitting income taxes. Put another way, a salaried person can submit a claim for House Rent Allowance (HRA) benefits by using the rent receipts as proof of total taxable pay.

Rent Receipt For Tax - Homes247

Important points about the rent receipts to claim HRA:

  • The salaried person needs to submit the rent-paid receipt for all the months to claim HRA.

  • You’ll also need a revenue stamp along with the rent receipts in case you are paying rent of more than Rs. 5000 per receipt in cash.

  • You don’t need a revenue stamp if you’re paying the rent through a cheque.

  • When the annual rent paid exceeds Rs.1,00,000 per year, then it is necessary to ask for the AN No of the landlord. With this, you can claim an HRA exemption in your office. In case you don’t have the landlord’s PAN No for any reason, you won’t be able to claim the HRA benefits and your TDS will be deducted accordingly.

Also Read: Online Tenant Police Verification - Benefits

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Most Frequently Asked Questions?
Is rent receipt sufficient?
 
 
 

Rent agreement is important but may not be a sufficient document on its own to claim HRA exemption for tax purposes, says Akhil Chandna, Partner, Grant Thornton Bharat. "Rent receipts serve as evidence that the employee has paid the rent amount mentioned in the rent agreement.

Can I generate rent receipt online?
 
 
 

A Rent Receipt Generator is an online tool that helps you create an accurate rent receipt quickly and easily. All you will have to do is enter the required information like tenant and landlord details, rental period, payment amount, etc.

How much can I claim under HRA?
 
 
 

Exemption limit, The actual HRA received, rent paid annually reduced by 10% of salary, 50% of your basic salary (if you live in a metro city), and. 40% of your basic salary (if you live in a non-metro city).

GRC Shreekrish - Homes247.in

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