HRA Calculator India 2026

HRA exemption under Section 10(13A) allows salaried employees to claim tax benefits on the House Rent Allowance received from their employer. The exempt amount is the minimum of three conditions: (1) Actual HRA received from employer, (2) 50% of Basic+DA for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities, (3) Actual rent paid minus 10% of Basic+DA. This exemption can save significant tax — for example, an employee in Mumbai with ₹50K Basic and ₹20K rent can exempt up to ₹2.4L/year from income tax.

No, HRA exemption under Section 10(13A) is only available under the old tax regime (pre-Budget 2020 regime). If you opt for the new tax regime (Section 115BAC), you cannot claim HRA exemption. The new regime has lower slab rates but removes most deductions. It's advisable to calculate your tax liability under both regimes — if your total deductions (HRA + 80C + 80D + home loan interest) exceed ₹2.5–3 lakhs, the old regime is usually beneficial.

Yes, rent receipts must be submitted to your employer to get HRA exemption reflected in Form 16. If annual rent exceeds ₹1,00,000, you must also provide the landlord's PAN number. Rent receipts should include: date, amount paid, name of tenant, address of rented property, landlord's name, signature, and revenue stamp (if paid in cash above ₹5,000). Maintain copies of all receipts and your rent agreement for at least 7 years for potential scrutiny.

No. HRA exemption is only available if you are actually paying rent for residential accommodation. If you live in your own house, with parents (even if you pay them rent — but must be genuine), or in company-provided accommodation, the HRA received is fully taxable. However, if you pay genuine rent to your parents and they declare it as rental income in their ITR, you can claim HRA exemption — this is a legal tax planning strategy widely used.

If your annual rent exceeds ₹1,00,000 and your landlord doesn't have a PAN, get a signed declaration from the landlord stating they don't have a PAN. Your employer may deduct TDS at 30% on the HRA amount exceeding the standard exemption in such cases. It's strongly advisable to encourage your landlord to get a PAN — the process is free and quick. Without PAN, your employer may not grant full HRA exemption, increasing your TDS.

Yes! You can claim both HRA exemption (Section 10(13A)) and home loan interest deduction (Section 24b, up to ₹2L) simultaneously if: you are paying rent for your current place of residence, AND your property under home loan is in a different city. Example: You work and rent in Mumbai but own a house under loan in Pune (rented out) — both claims are valid. If you own a house in the same city but live in a rented accommodation for convenience, this is a grey area and may face scrutiny.

For HRA exemption purposes, only four cities are officially classified as 'Metro' cities: Delhi (including NCR), Mumbai (including Thane and Navi Mumbai), Chennai, and Kolkata. For metro cities, the limit is 50% of Basic+DA. ALL other cities — including Bangalore, Hyderabad, Pune, Ahmedabad, and other large cities — are classified as 'Non-Metro' with a 40% limit. This frequently surprises IT employees in Bangalore and Hyderabad.

Yes, paying rent to parents and claiming HRA is legally permissible, provided: (1) The property is genuinely owned by the parent, (2) A proper rent agreement exists, (3) Rent is paid by bank transfer or cheque (avoid cash to maintain paper trail), (4) Parents declare the rent as income in their ITR and pay applicable tax. This strategy is especially beneficial if parents are in a lower tax slab — the tax saved by you may exceed the tax paid by parents, creating a family tax arbitrage.

Condition 3 for HRA exemption is: Rent Paid − 10% of (Basic + DA). The '10% of salary' acts as a threshold — only the rent exceeding 10% of your salary is considered for exemption. Example: Basic+DA = ₹50,000/month, Rent paid = ₹15,000/month. 10% of ₹50,000 = ₹5,000. Condition 3 = ₹15,000 − ₹5,000 = ₹10,000/month = ₹1,20,000 annually. This is calculated annually.

If you don't submit HRA proof (rent receipts) to your employer before the deadline (usually January–February), the employer will not reflect HRA exemption in Form 16. Your TDS will be higher as the full HRA is treated as taxable income. However, you can still claim the HRA exemption while filing your ITR (Income Tax Return) — just ensure you have all documents ready. The exemption is not lost but you'll receive a refund for excess TDS instead.