HRA Exemption Calculator
Determine your tax-exempt House Rent Allowance based on your salary, rent payments, and city of residence.
Salary & Rent Details
Exemption Analysis
Enter details & Click Calculate
HRA Exemption Calculation
Basic: ₹56,100 | Rent Paid: ₹20,000
Generated on 25 March 2026
This is an estimate based on current rules and projections. Actual values may vary.
Generated by DesiSalary.com
How is HRA Exemption Calculated?
Under Section 10(13A) of the Income Tax Act, the HRA exemption is calculated as the lowest of the following three values. The remaining HRA amount is added to your taxable income.
Actual HRA
Total HRA received from your employer.
Rent - 10% Salary
Actual Rent Paid minus 10% of (Basic + DA).
50% or 40%
50% of Salary for Metro Cities, 40% for Non-Metro.
Which cities are considered 'Metro' for HRA?
Only 4 cities in India qualify for the 50% criteria (Metro) for HRA calculation:
- Delhi
- Mumbai
- Kolkata
- Chennai
*Bangalore, Hyderabad, Pune, etc., are considered Non-Metro (40%) for HRA purposes, despite being major IT hubs.
Important Rules
- Proof of Rent: You need rent receipts if HRA > ₹3,000/month.
- PAN of Landlord: Mandatory to submit landlord's PAN if annual rent exceeds ₹1,00,000.
- Paying Rent to Parents: You can claim HRA by paying rent to parents, provided they own the house and declare it as income. You cannot pay rent to your spouse.
Metro vs Non-Metro Cities
| City Category | HRA Exemption Limit | Cities Included |
|---|---|---|
| Metro Cities | 50% of Basic Salary | Delhi, Mumbai, Kolkata, Chennai |
| Non-Metro Cities | 40% of Basic Salary | Bangalore, Hyderabad, Pune, Ahmedabad, Gurgaon, Noida, and all others |
Documents Required to Claim HRA
Rent Receipts
Mandatory if your HRA exceeds ₹3,000 per month. Receipts should have a revenue stamp (for cash payments > ₹5000).
Landlord's PAN
Mandatory if your total annual rent payment exceeds ₹1,00,000. If landlord has no PAN, a declaration is required.
Rental Agreement
While not always asked for immediately, a valid rental agreement is crucial evidence in case of IT scrutiny.
Form 12BB
You need to declare your rent paid and HRA details to your employer in Form 12BB at the start of the year.
HRA (Section 10-13A) vs Section 80GG
What if you pay rent but don't receive HRA as part of your salary? You can still save tax under Section 80GG.
| Feature | HRA (Sec 10-13A) | Sec 80GG |
|---|---|---|
| Eligibility | Salaried employees receiving HRA | Self-employed or Salaried with NO HRA |
| Max Deduction | No Upper Limit (upto Actual HRA) | ₹5,000 per month (₹60k/year) |
| Form Required | Form 12BB (to employer) | Form 10BA |
Frequently Asked Questions
My rent is ₹10,000/month. Do I need to submit receipts?
If your total rent paid in a year exceeds ₹1 Lakh or ₹3,000 per month, your employer will typically ask for rent receipts as proof.
Can I claim HRA if I live with my parents?
Yes, you can claim HRA by paying rent to your parents. You must transfer the money to their bank account and they must declare this as rental income in their tax return.
Is Bangalore or Hyderabad a Metro city?
No. Even though they are large IT hubs, for Income Tax HRA purposes, they are considered Non-Metro cities (40% exemption).
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