Income Tax Rules for HRA & Rent Receipts
- The ₹1 Lakh Rule: If you pay more than ₹1,00,000 per year (which is just ₹8,333 per month) in rent, it is mandatory to report your landlord's PAN to your employer. If the landlord doesn't have a PAN, they must provide a signed declaration.
- Paying Rent to Parents: Yes, you can claim HRA by paying rent to your parents, provided the property is owned by them. They must declare this rent as "Income from House Property" in their ITR. You must transfer the rent to their bank account and keep valid rent receipts.
- Revenue Stamps: A rent receipt is only legally valid if it is signed by the landlord across a ₹1 Revenue Stamp (only required if cash payment exceeds ₹5,000 per receipt). For online bank transfers, revenue stamps are generally not required by most HR departments, but it's best to check your company policy.