HRA Exemption Calculator

What is HRA?

House Rent Allowance (HRA) is a component of salary provided by employers to help employees meet rental expenses. Under Section 10(13A), part or all of HRA can be claimed as a tax exemption.

HRA Exemption Calculation

The exempt HRA is the minimum of:

• Actual HRA received from employer
• Rent paid minus 10% of (Basic + DA)
• 50% of (Basic + DA) for metro cities, 40% for non-metros

Metro Cities

The 50% rule applies only to these cities: Delhi, Mumbai, Chennai, and Kolkata. All other cities are considered non-metro (40% rule).

Documents Required

• Rent receipts (for rent exceeding ₹3,000/month)
• Landlords PAN (if annual rent exceeds ₹1,00,000)
• Rent agreement (recommended)

Important Points

• You must actually pay rent to claim HRA exemption
• Paying rent to parents is allowed if they declare it as income
• Self-employed individuals cannot claim HRA but can claim Section 80GG
• If you live in your own house, entire HRA is taxable

New Tax Regime Note

HRA exemption is NOT available under the new tax regime. If you opt for the new regime, your entire HRA becomes taxable.