New Delhi, Aug. 7 -- There are many cases in India where landlords insist on receiving rent in cash, whether for a rented flat, a shared accommodation or a paying guest (PG) facility. This is where things can become slightly complicated for salaried taxpayers who claim House Rent Allowance (HRA) under the old tax regime.

Paying rent in cash does not automatically make a taxpayer ineligible for HRA, and the benefit cannot be denied solely because the payment was made in cash. However, if the tenant is unable to maintain the required supporting documents, the HRA claim may face scrutiny and could even be rejected.

"The general idea is that cash rent payments do not negate HRA claims, but poor documentation will result in a claim that is d...