HRA Exemption Calculator
Calculate how much of your House Rent Allowance is exempt from tax.
How HRA Exemption Works (Section 10(13A))
If you receive House Rent Allowance (HRA) as part of your salary and you live in a rented house, a significant portion of the HRA can be claimed as tax-free under Section 10(13A) of the Income Tax Act.
The Three Limits Rule
Your HRA exemption is the least of the following three amounts:
- Actual HRA received from your employer
- 50% of (Basic + DA) if you live in a metro city, or 40% for non-metro cities
- Rent paid minus 10% of (Basic + DA)
Important Points
- You must actually pay rent for a residential property.
- If you live in your own house or with parents (without paying rent), you cannot claim HRA exemption.
- For rent above ₹3,000/month, rent receipts are usually required by your employer.
- If total rent paid in a year exceeds ₹1 lakh, you need to provide your landlord’s PAN.
Frequently Asked Questions
What is HRA exemption under Section 10(13A)?
If you receive House Rent Allowance (HRA) from your employer and pay rent, a portion of it is exempt from tax under Section 10(13A) of the Income Tax Act.
How is HRA exemption calculated?
It is the least of: (1) Actual HRA received, (2) 50% of salary (Metro) or 40% (Non-Metro), (3) Rent paid minus 10% of salary.
Do I need to submit rent receipts for HRA exemption?
Yes. For amounts above ₹3,000 per month, you generally need to submit rent receipts and a rent agreement to your employer. For amounts above ₹1 lakh per year, landlord PAN is also required.
Can I claim HRA exemption if I live in my own house?
No. HRA exemption is only available if you are actually paying rent for a residential accommodation.