Calculate your tax-free HRA amount under Section 10(13A) and see exactly how much tax you save.
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House Rent Allowance (HRA) is a component of salary paid by employers to cover rental costs. Employees who receive HRA and pay rent can claim an exemption under Section 10(13A) of the Income Tax Act. Self-employed individuals cannot claim HRA (they use Section 80GG instead).
Yes — you can pay rent to your parents and claim HRA, as long as the rent is genuine, documented with a rent agreement and receipts, and your parents declare it as rental income in their ITR. Your parents' property must be in their name.
If your annual rent exceeds ₹1 lakh (₹8,333/month), you must provide your landlord's PAN to your employer. For rent below ₹1 lakh, receipts are typically sufficient. Your employer uses these to compute TDS correctly.
Yes — if you own a property in one city and rent in another (e.g., you work in Mumbai but own a house in Hyderabad), you can claim both HRA exemption and home loan interest deduction simultaneously.
If your employer doesn't pay HRA (common for self-employed or those with HRA not included in salary), you can claim rent deduction under Section 80GG — minimum of: ₹5,000/month, 25% of total income, or actual rent minus 10% of total income. However, you or spouse/minor child must not own a house in the city you're renting in.
The India HRA Exemption Calculator determines the tax-free portion of the House Rent Allowance (HRA) you receive from your employer under Section 10(13A) of the Income Tax Act for FY 2024-25. Enter your basic salary, your actual HRA received from your employer, the rent you actually pay per year, and whether you live in a metro city (Delhi, Mumbai, Kolkata, or Chennai). The calculator instantly applies all three conditions of Section 10(13A) and returns the minimum — which is the exempt amount — as well as which condition is the binding constraint. This helps you understand exactly how much of your HRA is shielded from income tax and how much is taxable.
Under Indian tax law, the HRA exemption is the lowest of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities or 40% for non-metro cities. All three conditions must be checked simultaneously because each one caps the exemption from a different direction. If you live in a metro and pay high rent, condition three often binds. If you pay modest rent, condition two — actual rent minus 10% of basic — often sets the limit. The exemption cannot exceed the HRA actually received, so condition one always acts as an absolute ceiling. The calculator makes these three-way comparisons instantly so you do not need to work through the arithmetic manually.
HRA exemption is only available if you are paying rent and living in rented accommodation. If you live in your own home or in accommodation provided rent-free by your employer, HRA received is fully taxable. You must also be able to provide rent receipts if asked by your employer or the Income Tax Department — for annual rent above ₹1 lakh, your employer is required to collect your landlord's PAN. It is worth noting that HRA exemption applies only under the Old Tax Regime: if you have opted into the New Tax Regime introduced in FY 2020-21, you cannot claim the HRA exemption but will benefit from the lower default tax rates.
The exempt amount is the lowest of: (1) actual HRA received from employer, (2) actual rent paid minus 10% of basic salary, and (3) 50% of basic salary for employees in Delhi, Mumbai, Kolkata, or Chennai — or 40% for employees in any other city.
No. The HRA exemption is only available if you are actually paying rent for rented accommodation. If you live in your own property, the entire HRA received from your employer is fully taxable as part of your salary income.
No. The New Tax Regime (introduced from FY 2020-21) does not allow most deductions and exemptions, including HRA under Section 10(13A). If you opt for the New Tax Regime, your entire HRA is taxable. You should compare the two regimes using your actual figures before making your choice for the year.
Yes, if your annual rent exceeds ₹1,00,000 (₹8,333/month). In this case, your employer will require you to submit your landlord's PAN card details along with your rent receipts to process the HRA exemption through payroll.
For HRA exemption, basic salary means your basic pay plus dearness allowance (DA), if DA forms part of your retirement benefit. It does not include other allowances such as travel allowance, medical allowance, or commission unless specifically included in your salary structure's definition. Check your pay slip to identify the correct figure.