HRA Calculator
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Everything You Need to Know About HRA Tax Exemption
Smart HRA Tax Planning Tips
- Keep all rent receipts and rent agreement ready for tax filing
- Get landlord's PAN if annual rent exceeds ₹1 lakh
- HRA exemption is only available in Old Tax Regime
- You can claim HRA even if you pay rent to your parents
- Cannot claim HRA if you own a house in the same city
- Submit rent receipts to employer for monthly TDS adjustment
- Consider rental amount vs HRA received for maximum benefit
- Keep cancelled cheques/bank statements as payment proof
Understanding HRA Exemption
HRA (House Rent Allowance) exemption under Section 10(13A) is calculated as the minimum of three amounts:
HRA Exemption = Minimum of:
- Actual HRA received from employer
- Rent paid minus 10% of (Basic + DA)
- 50% of (Basic + DA) for metro cities OR 40% for non-metro cities
Metro Cities: Mumbai, Delhi NCR, Chennai, Kolkata, Hyderabad, Bengaluru, Pune, and Ahmedabad are considered metro cities for HRA calculation.
Important: The remaining HRA after exemption becomes taxable and is added to your gross salary.
Frequently Asked Questions
Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA if you pay rent to your parents. However, your parents must show this rental income in their tax returns. You cannot claim if you're a co-owner of the property.
What if I don't have rent receipts?
Rent receipts are mandatory for claiming HRA. If you don't have them, request your landlord to provide receipts for all months. For amounts above ₹5000/month, revenue stamp is required on receipts.
Can I claim both HRA and home loan benefits?
Yes, if you own a house in a different city and live on rent in your work city, you can claim both HRA exemption and home loan interest deduction under Section 24.
Is HRA exemption available in New Tax Regime?
No, HRA exemption under Section 10(13A) is not available in the New Tax Regime. You need to opt for the Old Tax Regime to claim HRA benefits.
What happens if I receive HRA but don't pay rent?
If you receive HRA but don't pay rent, the entire HRA amount becomes taxable and will be added to your gross salary. You cannot claim any exemption.
How to claim HRA if I changed houses during the year?
You can claim HRA for multiple houses in a year. Keep rent receipts and agreements for all houses. The calculation will be done month-wise based on actual rent paid.
Complete HRA Tax Exemption Guide
Everything you need to know about claiming HRA exemption in India
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