HRA exemption = Minimum of (1) Actual HRA received, (2) 50% of basic (metro) or 40% (non-metro), (3) Rent paid minus 10% of basic salary.
Your HRA Details (Monthly)
Annual HRA Exemption
₹0
tax-free under Section 10(13A)
Limit 2 (50%/40% Basic)
₹0
Annual Breakdown
HRA Received (Annual)₹0
HRA Exempt (Annual)₹0
Taxable HRA (Annual)₹0
HRA Exemption — Everything Explained
How is HRA exemption calculated?+
HRA exemption is the MINIMUM of three limits: (1) Actual HRA received from employer, (2) 50% of Basic Salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro, (3) Rent paid minus 10% of Basic Salary. The lowest of these three is your tax-exempt HRA. The remaining HRA above this exemption is taxable as salary income.
Can I claim HRA if I pay rent to my parents?+
Yes, you can pay rent to parents and claim HRA exemption — but with conditions: (1) Your parents must own the property, (2) A proper rent agreement must exist, (3) Your parents must show rental income in their ITR, (4) TDS applies if rent exceeds ₹50,000/month. This is legal and widely used for tax planning, but must be genuine and documented.
Is HRA available under the new tax regime?+
No. HRA exemption is available only under the old tax regime. Under the new tax regime (which is now the default), HRA is fully taxable. This is one of the biggest reasons why the old regime may be better for employees paying high rent. Use our Income Tax Calculator to compare both regimes for your specific situation.
Do I need to submit rent receipts to claim HRA?+
Rent receipts are required when rent exceeds ₹1 lakh per year (₹8,333/month). The landlord's PAN is mandatory if annual rent exceeds ₹1 lakh. For rent below ₹1 lakh/year, self-declaration to your employer is sufficient. Keep rent receipts for 6 years in case of tax scrutiny.