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Calculate your House Rent Allowance (HRA) exemption under Section 10(13A). Know your taxable HRA, identify the limiting factor, and estimate your tax savings instantly.
Basic salary + Dearness Allowance (DA) as per salary slip
Total HRA component received from employer in a year
Monthly rent paid for accommodation. Must have rent receipts.
Calculated automatically from monthly rent
Exempt HRA
₹1,20,000
Taxable HRA
₹1,20,000
Total HRA Received
₹2,40,000
Annual Rent Paid
₹1,80,000
Actual HRA Received
HRA component mentioned in your salary slip
₹2,40,000
₹2,40,000
Rent Paid - 10% of Basic
Annual rent minus 10% of basic salary
₹1,80,000 - 10% of ₹6,00,000
₹1,20,000
50% of Basic Salary
50% of basic salary for metro cities
50% of ₹6,00,000
₹3,00,000
Exempt HRA (Least of above 3)
This amount is deducted from your taxable income
₹1,20,000
@ 5% Slab
₹6,240
Base: ₹6,000 + 4% cess
@ 20% Slab
₹24,960
Base: ₹24,000 + 4% cess
@ 30% Slab
₹37,440
Base: ₹36,000 + 4% cess
House Rent Allowance (HRA) is a component of your salary provided by employers to help employees meet their rental accommodation expenses. While HRA is part of your gross salary, a portion of it can be exempt from income tax under Section 10(13A) of the Income Tax Act, 1961, provided you live in a rented house and pay rent.
The exempt portion of HRA is deducted from your gross salary, reducing your taxable income. The remaining HRA (taxable HRA) is added to your salary income and taxed as per your income tax slab. HRA exemption is available only under the Old Tax Regime.
Salaried individuals who receive HRA as part of their salary and live in rented accommodation.
HRA exemption is available only under the Old Tax Regime. It is not available under the New Tax Regime.
Rent receipts, rent agreement, and PAN of landlord if annual rent exceeds ₹1,00,000.
The Income Tax Act specifies that the HRA exemption is the least of the following three conditions. Our calculator computes all three and identifies the limiting factor automatically.
The total HRA amount mentioned in your salary slip and Form 16.
Actual annual rent paid minus 10% of your basic salary (including DA).
50% of basic salary for metro cities. 40% for non-metro cities.
Important: If you do not pay any rent, the entire HRA received is taxable. Similarly, if Condition 2 calculates to a negative number, it is treated as zero.
All other cities and towns in India fall under the non-metro category. This includes cities like:
Once you have determined the exempt HRA (the least of the three conditions), calculating the taxable portion is straightforward:
Taxable HRA = Total HRA Received - Exempt HRA
The taxable HRA is added to your "Income from Salary" and taxed according to your applicable income tax slab rate. For example:
The Income Tax Department may ask for rent receipts as proof. Always collect and preserve rent receipts from your landlord, especially if rent exceeds ₹3,000 per month.
If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN. Failing to do so may result in the HRA exemption being disallowed.
While paying rent to parents or spouse is legally allowed, you must have a genuine rental agreement, rent receipts, and bank transfer records. The property should be in their name.
You cannot claim HRA exemption if you do not actually pay rent or if you live in your own house. The exemption is strictly for rented accommodation.
Using the wrong percentage (50% vs 40%) can lead to incorrect exemption calculation. Make sure you classify your city correctly.
HRA exemption is NOT available under the New Tax Regime. If you opt for the New Regime, your entire HRA becomes taxable.
Yes, you can claim both HRA exemption and home loan tax benefits simultaneously under certain conditions:
Tip: If you live in a rented house in the same city as your own house, the tax officer may scrutinize your claim more closely. Keep proper documentation ready to justify your claim.
A: No, HRA exemption under Section 10(13A) is NOT available under the New Tax Regime. If you opt for the New Regime, your entire HRA becomes taxable. However, the New Regime offers lower tax rates and a higher standard deduction (₹75,000) which may offset the loss of HRA exemption for some taxpayers.
A: If you do not receive HRA but pay rent, you can claim deduction under Section 80GG. The maximum deduction under 80GG is ₹5,000 per month (₹60,000 per year) or 25% of total income, whichever is lower, subject to other conditions.
A: Yes, you can pay rent to your parents and claim HRA exemption, provided the house is in their name, you have a genuine rent agreement, rent receipts, and bank transfer records. Your parents must declare this rental income in their ITR. However, paying rent to your spouse is generally not accepted by tax authorities.
A: Yes, most employers require rent receipts as proof to calculate HRA exemption while deducting TDS. If you do not submit proofs, your employer may deduct higher TDS. You can still claim the exemption while filing your ITR by providing the necessary details.
A: If your annual rent exceeds ₹1,00,000, you need to provide your landlord's PAN. If the landlord does not have a PAN, you should obtain a declaration from them using Form 60. However, not having landlord PAN may increase scrutiny risk.
A: HRA is calculated on a per-employer basis. If you change jobs, each employer will calculate HRA exemption for the period you were employed with them. You need to ensure that the total rent paid and basic salary are correctly apportioned across employers when filing your ITR.
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