HRA Calculator
Calculate your House Rent Allowance tax exemption under Section 10(13A) for FY 2025-26
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How is HRA Exemption Calculated?
Under Section 10(13A) of the Income Tax Act, the HRA exemption is the minimum of three values:
A
Actual HRA received from your employer during the year.
B
50% of (Basic + DA) for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for all other cities.
C
Actual rent paid minus 10% of (Basic + DA). If this is negative, it becomes zero.
The lowest of A, B, and C is your HRA exemption. The remaining HRA (if any) is added to your taxable income.
Important HRA Rules You Must Know
- You must actually be paying rent to claim HRA exemption. Rent paid to family members is allowed but must be genuine.
- If annual rent exceeds ₹1 lakh (₹8,333/month), you must provide your landlord's PAN to your employer.
- You cannot claim HRA exemption if you own a home in the same city where you work.
- Self-employed individuals cannot claim HRA under Section 10(13A) but can claim deduction under Section 80GG.
- HRA is not available under the New Tax Regime introduced in FY 2020-21.
Frequently Asked Questions
Yes. You can pay rent to your parents and claim HRA exemption, as long as the payment is genuine and your parents include it as rental income in their ITR. This is a completely legal tax-saving strategy.
If your employer does not give you HRA but you pay rent, you can claim deduction under Section 80GG up to ₹5,000/month or 25% of total income, whichever is less — provided you do not own a house in the city you work in.
Yes, in some cases. If you have a home loan on a property in a different city from where you work, you can claim both HRA exemption (for the rented place where you live) and home loan deduction (for the property you own but cannot live in).
Yes. Most employers require rent receipts for claims above ₹3,000/month and a rent agreement. For rent above ₹8,333/month (₹1 lakh annually), your landlord's PAN is mandatory.