Notes
( RENTING, ANSWERED · 1 OCT 2026 · UPDATED 1 OCT 2026 · 1 MIN )

What is HRA and can I claim it on rent paid in cash?

House Rent Allowance, HRA, is the part of your salary that is exempt from income tax when you actually pay rent, within limits set by the rules under the new Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026.

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Yes, you can claim it on rent paid in cash. What matters is proof, not the payment method, so keep signed rent receipts and your agreement. If your annual rent crosses ₹1,00,000, about ₹8,333 a month, you must also give your employer your landlord's PAN, a rule the Income Tax Department has held since a 2012 circular. Keep every receipt, and ask your landlord for their PAN early in the tenancy.

01

The number

PAN of landlord mandatory once annual rent exceeds ₹1,00,000, about ₹8,333 a month (Income Tax Dept Circular 8/2012); HRA now governed by the Income-tax Act 2025, effective 1 April 2026.

02

Sources

Where it comes from. Level 1 is a government or court page, level 2 established press, level 3 a portal's explainer, which gives only what is commonly quoted.

  • Income Tax Department, Circular No. 8/2012, https://www.incometaxindia.gov.in/w/08/2012-circular-no.-8/2012-dated-5-10-2012, level 1
  • Deccan Herald, https://www.deccanherald.com/business/centre-notifies-income-tax-act-2025-law-to-come-into-effect-from-april-1-2026-3693171, level 2
( THE NUMBER )

PAN of landlord mandatory once annual rent exceeds ₹1,00,000, about ₹8,333 a month (Income Tax Dept Circular 8/2012);

PAN of landlord mandatory once annual rent exceeds ₹1,00,000, about ₹8,333 a month (Income Tax Dept Circular 8/2012); HRA now governed by the Income-tax Act 2025, effective 1 April 2026.

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