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Short answer: a rent receipt for HRA needs the tenant’s name, the owner’s name, the PG address, the rent amount, the period it covers, the date and mode of payment, and the owner’s signature. If the rent you pay in the year is above ₹1 lakh, the owner’s PAN must be on it too. A ₹1 revenue stamp is needed only when rent above ₹5,000 is paid in cash.
PG and hostel rent counts for HRA just like a flat. Below is a copy-ready format, the rules that trip people up, and how owners can issue receipts without extra work.
Rent receipt format (copy-ready)
RENT RECEIPT
Receipt no.: ____ Date: __/__/____
Received with thanks from [Tenant name] the sum of ₹[amount] (Rupees [amount in words] only) towards rent for [Room / bed no.] at [PG name and full address] for the period [1 Nov 2026 to 30 Nov 2026].
Payment mode: [UPI / bank transfer / cheque / cash] Reference no.: [UPI or cheque ref.]
Owner name: [Owner name] Owner PAN: [PAN]
Signature of owner: ____________ [₹1 revenue stamp, only for cash above ₹5,000]
Prefer a filled PDF? Our free rent receipt generator makes one in a minute, for one month or a whole year.
What every receipt must include
| Field | Why it matters |
|---|---|
| Tenant name | Must match the employee claiming HRA |
| Owner name and signature | Shows who received the rent |
| PG name and full address | Your employer checks the city (metro or non-metro) from it |
| Rent amount and period | One receipt per month, or one covering a quarter or year |
| Date and mode of payment | Digital payments are easy to verify |
| Owner PAN | Required when annual rent is above ₹1 lakh |
When the owner’s PAN is required
If the rent you pay in the financial year is more than ₹1 lakh (on average about ₹8,334 a month or more), your employer needs the owner’s PAN to allow the HRA exemption. Without it, the exemption is not processed through payroll.
If the owner genuinely does not have a PAN, a signed declaration from the owner stating this, with their name and address, is the usual alternative. Ask your employer which form they accept.
Do you need a revenue stamp?
Only when rent above ₹5,000 is paid in cash. Then the owner signs across a ₹1 revenue stamp on the receipt. Rent paid by UPI, bank transfer or cheque does not need one, though some HR teams ask for it anyway. Paying digitally avoids the question and gives you proof of payment.
PG fees that include food
Many PGs charge one amount for the bed, meals, Wi-Fi and housekeeping. HRA covers rent for accommodation, so the cleanest receipts show the rent separately from food and other charges. Ask the owner to split the amount on the receipt (for example, “Rent ₹7,000; food ₹3,000”). If your employer accepts a combined figure, that is their call, but a split receipt avoids questions later.
How the HRA exemption is calculated
The exempt HRA is the lowest of:
- The HRA you actually receive from your employer.
- Rent paid minus 10% of basic salary (basic plus dearness allowance, if any).
- 50% of basic if you live in a metro city, or 40% elsewhere.
Example: basic salary ₹30,000 a month, HRA ₹12,000 a month, PG rent ₹9,000 a month in a non-metro city.
| Item | Monthly | Yearly |
|---|---|---|
| 1. HRA received | ₹12,000 | ₹1,44,000 |
| 2. Rent − 10% of basic | ₹9,000 − ₹3,000 = ₹6,000 | ₹72,000 |
| 3. 40% of basic (non-metro) | ₹12,000 | ₹1,44,000 |
| Exempt HRA (lowest) | ₹6,000 | ₹72,000 |
Here the yearly rent is ₹1,08,000, which is above ₹1 lakh, so the owner’s PAN is needed.
Old regime only: the HRA exemption is available only if you choose the old tax regime. Under the new regime, which is the default, HRA is fully taxable and rent receipts do not reduce your tax.
For PG owners: issuing receipts without the paperwork
Working tenants will ask for receipts every quarter, usually in a rush before their employer’s deadline. Issuing a receipt at the time of each payment saves that scramble, and it settles any “I already paid” disputes.
In My PG Manager, every recorded payment sends the tenant a receipt on WhatsApp, and tenants can open all their past receipts in the free tenant app. You can also generate invoice PDFs with your PG’s name and branding. It costs ₹159 a month after a 14-day free trial. See pricing, or read how to collect PG rent online by UPI.
Frequently asked questions
Can I claim HRA for a PG or hostel?
Yes. HRA covers rent for the place you live in, and a PG or hostel counts. You need rent receipts (and the owner’s PAN above ₹1 lakh a year), and you must be on the old tax regime.
Is a monthly receipt required, or is one per year enough?
Either works for most employers, as long as the receipt shows the period and amount. Monthly receipts issued at payment are the most reliable.
My PG owner will not give receipts. What can I do?
Keep proof of every payment (UPI or bank statements), and ask the owner for a signed receipt or a rent agreement. Paying by UPI or bank transfer at least gives you a verifiable record.
Does a rent receipt need a revenue stamp if I pay by UPI?
No. A ₹1 revenue stamp is needed only for cash payments above ₹5,000.
Sources
- HRA rules, the least-of-three formula, landlord PAN above ₹1 lakh, and old vs new regime: TaxBuddy, Finnovate.
- Revenue stamp on cash rent receipts above ₹5,000: ClearTax, Housing.com.
Last reviewed: October 2026. This article is general information, not tax advice. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026; check current rules with your employer or a tax professional before filing.
We build My PG Manager, the app PG and hostel owners use for rooms, tenants, rent collection and WhatsApp reminders. Our guides come from running it with owners across India.
