HRA Exemption Calculator

Section 10(13A) gives an exemption equal to the least of:

1. Actual HRA received from the employer
2. Rent paid minus 10% of basic salary (plus DA if it forms part of retirement benefits)
3. 50% of basic salary if you live in a metro (Mumbai, Delhi, Kolkata, Chennai), or 40% if non-metro

The remaining HRA — the part that exceeds the exempt amount — is added to your taxable salary.

Only four cities count as metro for the 50% rate:

• Mumbai
• Delhi (includes the NCT proper, not all NCR)
• Kolkata
• Chennai

Bengaluru, Hyderabad, Pune, Ahmedabad, Gurugram, Noida, and every other city — even though metropolitan in size — are non-metro for HRA and use the 40% rate. This is from the Income Tax Act and has not been updated despite the growth of other Indian cities.

No. HRA exemption under Section 10(13A) is available only under the Old Tax Regime. The New Regime (FY 2026-27) gives a higher standard deduction (₹75,000 vs ₹50,000 in Old) but disallows HRA, 80C, 80D, home loan interest under Section 24, and most other deductions.

If your HRA exemption is large — typically ₹2,00,000+ for metro residents — the Old Regime can still be cheaper overall. Run both through the Income Tax Calculator with your actual numbers.

Your employer needs:

• Rent receipts from the landlord (monthly or quarterly)
• A rental agreement if available (some employers require it)
• The landlord's PAN if your annual rent exceeds ₹1,00,000 (about ₹8,333 / month). If the landlord does not have PAN, a Form 60 declaration is acceptable.

Without these, the employer will tax the full HRA. You can still claim the exemption while filing your ITR by attaching the documents, but TDS during the year would be higher than necessary.

Yes — provided the arrangement is genuine. The IT Department will look for:

• Bank transfers (not cash) showing the rent payments to the parent's account
• A written rental agreement
• The parent declaring the rental income in their income tax return
• The property being legally owned by the parent (or in the parent's name on the lease/society records)

If any of these are missing, the deduction can be denied during scrutiny. Pay rent the way an arms-length tenant would.

Often yes. Common scenarios where both are allowed:

• You own a house in one city (with a home loan) and live and pay rent in another for work. Claim HRA for the rented house and home loan interest under Section 24 for the owned house (let out or deemed let out).
• Your owned house is under construction and you're paying rent meanwhile.
• Your owned house is too far from your workplace for daily commute.

If both the owned and rented houses are in the same city, the IT Department may scrutinize. You'd need to justify why you can't live in your own home. Always keep documentation.

HRA under Section 10(13A) is salary-only. If you're self-employed and pay rent for your residence, you can instead claim a deduction under Section 80GG:

The least of: (1) ₹5,000 / month, (2) 25% of total income, or (3) actual rent paid minus 10% of total income. Maximum ₹60,000 / year.

80GG also requires you (and your spouse / minor child) to not own residential accommodation in the city where you live and work. Form 10BA must be filed.