How is HRA Exemption Calculated in India?
House Rent Allowance (HRA) is paid by employers to salaried employees to cover accommodation expenses. Under Section 10(13A) of the Income Tax Act (Old Tax Regime), the tax-exempt HRA is the lowest of the following three amounts:
- Actual HRA received from the employer.
- 50% of Basic Salary + DA (for Metro cities: Delhi, Mumbai, Kolkata, Chennai) OR 40% of Basic Salary + DA (for Non-Metro cities).
- Actual Rent Paid minus 10% of Basic Salary + DA.
HRA Exemption Calculator
🏠 HRA Tax Exemption Calculator
Tax-Exempt HRA Amount
Rs. 1,40,000
Taxable HRA Amount
Rs. 1,00,000
Important HRA Exemption Rules:
- Landlord's PAN: If your annual rent payment exceeds Rs. 1,00,000, it is mandatory to submit the landlord's PAN to your employer.
- Rent to Parents: You can legally pay rent to your parents and claim HRA, provided the property is registered in their name and they declare it as rental income.
- Tax Regime: HRA exemption is available ONLY under the Old Tax Regime. The New Tax Regime does not support HRA deductions.
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Disclaimer: The calculations provided by these calculators are estimates based on standard rules and current policies. For official government declarations, financial planning, or investments, please consult with a certified financial planner. — Global Info Wiki Editorial Team
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