# Cash rent allowed for HRA, but proper records needed

2026-08-07T15:11:32+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Paying rent in cash does not automatically disqualify salaried individuals from claiming House Rent Allowance (HRA) under the old tax regime, says a Livemint report. However, since cash payments leave no digital trail, tenants must maintain proper documentation including rent receipts, a rent agreement, and proof of cash withdrawals. Without adequate records, the Income Tax Department may reject the claim. Tax expert Siddharth Maurya said poor documentation makes an HRA claim difficult to defend if challenged. For monthly rent above Rs 50,000, TDS provisions apply regardless of payment mode. If annual rent exceeds Rs 1 lakh, the landlord’s PAN is typically required. Landlords cannot accept Rs 2 lakh or more in cash in a day under Section 269ST.

## Coverage

- livemint.com <https://www.livemint.com/money/personal-finance/rent-paid-in-cash-is-not-illegal-but-this-one-mistake-can-cost-salaried-tenants-their-hra-benefit-details-here-11786090333974.html>

Tags: cash rent, documentation, HRA, Income tax, tax exemption, TDS
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