How HRA exemption is calculated
Under section 10(13A), the tax-free part of HRA is the lowest of:
- Actual HRA received
- Rent paid minus 10% of basic salary (plus DA if it counts for retirement benefits)
- 50% of basic salary in Delhi, Mumbai, Kolkata or Chennai; 40% elsewhere
The rest of the HRA is taxable. The exemption is available only in the old tax regime. If you do not receive HRA but pay rent, you may be able to claim section 80GG instead.
Documents to keep
- Rent receipts or a rent agreement
- The landlord’s PAN if rent exceeds ₹1 lakh a year
- Proof of payment (bank transfer is best)
Compare regimes with our income tax calculator, or let us file your ITR.
Frequently Asked Questions
Can I claim HRA in the new tax regime?
No. HRA exemption is available only under the old regime.
Is Noida or Gurgaon a metro for HRA?
No. Only Delhi, Mumbai, Kolkata and Chennai get the 50% limit; Noida, Gurgaon, Bengaluru and other cities use 40%.
Can I pay rent to my parents and claim HRA?
Yes, if you genuinely pay rent to a parent who owns the house and they show it as income. You cannot pay rent to your spouse.
Do I need the landlord's PAN?
Yes, if the annual rent is more than ₹1 lakh.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.