HRA (House Rent Allowance) Calculator
What is HRA Exemption?
House Rent Allowance (HRA) is a part of the salary provided by an employer to an employee to meet their accommodation expenses. Under Section 10(13A) of the Income Tax Act, a part of HRA can be claimed as an exemption if the employee lives in a rented accommodation.
How is HRA Exemption Calculated?
The exemption is the minimum of the following three amounts:
- Actual HRA received from the employer.
- Actual rent paid minus 10% of (Basic Salary + DA).
- 50% of (Basic Salary + DA) for Metro cities (Delhi, Mumbai, Kolkata, Chennai) OR 40% for Non-Metro cities.
Frequently Asked Questions
Salaried individuals who receive HRA as part of their salary and pay rent for their
accommodation can claim HRA exemption. Self-employed individuals cannot claim HRA but can claim
deduction under Section 80GG.
Yes, if the annual rent paid exceeds ?1,00,000, you must provide the landlord's PAN to your
employer to claim HRA exemption.
Yes, if you pay rent to your parents and they show it as rental income in their tax return.
However, you cannot claim HRA if you are a joint owner of the property.