📊 HRA Calculator - House Rent Allowance
Calculate HRA tax exemption under Section 10(13A) for salaried employees
📋 Salary & Rent Details
📊 HRA Exemption Results
📌 HRA Exemption Formula (Section 10(13A))
HRA exemption is the minimum of:
- Actual HRA received from employer
- 50% of (Basic + DA) for Metro / 40% for Non-Metro
- Rent Paid minus 10% of (Basic + DA)
What is HRA (House Rent Allowance)?
House Rent Allowance (HRA) is a component of salary paid by employers to employees to meet rental expenses. HRA is partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act, making it one of the most common tax-saving tools for salaried individuals.
HRA Exemption Rules (Section 10(13A))
- Actual HRA received from employer
- 50% of (Basic + DA) for Metro cities / 40% for Non-Metro
- Actual Rent Paid minus 10% of (Basic + DA)
Metro Cities: Delhi, Mumbai, Kolkata, Chennai
HRA Calculation Example
Option 1: Actual HRA = ₹20,000 × 12 = ₹2,40,000
Option 2: 50% of Basic = ₹50,000 × 0.5 × 12 = ₹3,00,000
Option 3: Rent – 10% Basic = (₹25,000 – ₹5,000) × 12 = ₹2,40,000
Exempt HRA: Minimum = ₹2,40,000 (tax-free)
Taxable HRA: ₹2,40,000 – ₹2,40,000 = ₹0
Conditions for HRA Exemption
- You must be a salaried employee receiving HRA
- You must actually pay rent for the accommodation
- You should not own the house in the same city where you claim HRA
- Rent receipts required if annual rent exceeds ₹1,00,000
- Landlord’s PAN required if annual rent exceeds ₹1,00,000
- HRA is only for Old Tax Regime — not available under New Tax Regime
HRA for Different Tax Regimes
| Feature | Old Tax Regime | New Tax Regime |
|---|---|---|
| HRA Exemption | Available under Sec 10(13A) | NOT available |
| Sec 80C | Available | NOT available |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Best For | High rent payers | No rent / low rent |
Documents Required for HRA Claim
- Monthly rent receipts (signed by landlord)
- Landlord’s PAN if rent > ₹1 lakh/year
- Rental agreement (recommended)
- Proof of rent payment (bank transfer preferred)
FAQs About HRA
Q1. Can I claim HRA if I pay rent to parents?
Yes, you can pay rent to parents and claim HRA exemption. Ensure proper rent receipts and the parent declares it as income.
Q2. Can I claim HRA and home loan both?
Yes, if the house is in a different city. You can claim HRA for rent and home loan deduction (Sec 24) simultaneously.
Q3. Is HRA available in New Tax Regime?
No, HRA exemption is NOT available under the New Tax Regime (Sec 115BAC).
Q4. What if I don’t receive HRA in salary?
Self-employed or those without HRA component can claim deduction under Section 80GG (max ₹5,000/month).
Q5. Is rent receipt mandatory?
Yes, if annual rent exceeds ₹1,00,000. Landlord’s PAN is also required above this threshold.
Conclusion
HRA is one of the easiest and most effective ways for salaried employees to save tax under the old regime. Use our HRA calculator to determine the exact exempt amount and plan your tax savings accordingly.