HRA Exemption Calculator
Calculate how much of your House Rent Allowance is tax-free under the Old Tax Regime.
FAQs on HRA Exemption Calculator
What is HRA exemption?
HRA exemption is a tax benefit available under Section 10(13A) of the Income Tax Act for salaried employees who receive House Rent Allowance and live in rented accommodation.
How is HRA exemption calculated?
HRA exemption is calculated as the minimum of: actual HRA received, 50% of basic salary for metro cities or 40% for non-metro cities, and rent paid minus 10% of basic salary.
Which cities are considered metro for HRA?
Delhi, Chennai,, Mumbai, Kolkata, Bengaluru, Pune, Hyderabad, and Ahmedabad are classified as metro cities for HRA calculation. Employees living in these cities can use 50% of basic salary while calculating exemption.
Is HRA exemption allowed in the New Tax Regime?
No, HRA exemption is not available under the New Tax Regime. It is allowed only under the Old Tax Regime.
Can I claim HRA if I live in my own house?
No, HRA exemption can only be claimed if you live in rented accommodation and actually pay rent.
Is landlord PAN required for HRA claim?
Yes, if annual rent exceeds ₹1,00,000, you must provide the landlord’s PAN details to your employer while claiming HRA exemption.
Can I pay rent to my parents and claim HRA?
Yes, you can claim HRA if you pay rent to your parents, provided there is a valid rent agreement and the rent is declared as income by your parents.