HRA Calculator
Calculate your House Rent Allowance (HRA) exemption and maximize your tax savings based on your salary and rent.
Salary & Rent Details
*Metro cities include Delhi, Mumbai, Kolkata, and Chennai.
*This amount will be added to your taxable income.
HRA Calculation Logic
Your HRA exemption is the minimum of the following three amounts:
Tax Saving Tip
If your rent is less than 10% of your salary, you won't get any HRA exemption. To maximize savings, ensure your rent exceeds 10% of your (Basic + DA) income.
Understanding HRA Exemption
House Rent Allowance (HRA) is a component of your salary provided by your employer to cover your rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of this allowance is exempt from tax.
Eligibility Criteria
- You must be a salaried individual receiving HRA as part of your salary.
- You must be living in a rented accommodation (not your own house).
- The rent paid must exceed 10% of your salary (Basic + DA).
Important: PAN of Landlord
If your total rent paid in a financial year exceeds ₹1,00,000, you must provide the PAN of your landlord to your employer to claim the HRA exemption.
Frequently Asked Questions
Can I claim HRA if I live in my own house?
No, HRA exemption is only available if you are paying rent for a house that you do not own.
Can I pay rent to my parents and claim HRA?
Yes, you can pay rent to your parents and claim HRA exemption, provided they own the property and you have a valid rent agreement and payment proofs (rent receipts/bank transfers).
Can I claim both HRA and Home Loan benefits?
Yes, you can claim both if you live in a rented house in one city and have a home loan for a house in another city (or the same city, provided there is a valid reason like distance from workplace).
What if my employer doesn't provide HRA?
If you pay rent but do not receive HRA from your employer, you can claim a deduction under Section 80GG, subject to certain conditions and limits.