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Calculate your HRA exemptions easily.
HRA Exemption Calculator – Save Tax on Rent
House Rent Allowance (HRA) is a crucial component of an employee's salary in India. If you live in a rented accommodation, you can claim a tax exemption on the HRA received under Section 10(13A) of the Income Tax Act.
How is HRA Exemption Calculated?
The exempt HRA amount is the lowest of the following three calculations:
- Actual HRA received from the employer.
- Actual rent paid minus 10% of Basic Salary (+ DA).
- 50% of Basic Salary (if living in a Metro city like Delhi, Mumbai, Chennai, Kolkata) OR 40% of Basic Salary (for Non-Metro cities).
Important Rules
- You cannot claim HRA exemption under the New Tax Regime.
- If rent paid exceeds ₹1,00,000 per annum, providing the landlord's PAN is mandatory.
- You can claim both HRA and home loan interest (Section 24b) simultaneously if you work in one city but own a home in another.
Frequently Asked Questions
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 actual rent receipts and bank transfer proofs. The rental income will be taxable in your parents' hands.