HRA Exemption Calculator
House Rent Allowance exemption under Section 10(13A).
Compute HRA exemption under Section 10(13A) of the Income Tax Act, 1961 (Old Regime only). The exempt amount is the lowest of (a) actual HRA received, (b) 50% / 40% of salary, or (c) rent paid minus 10% of salary.
HRA Exemption Calculation
Exempt amount = lowest of the three below:
(a) Actual HRA received₹ 0
(b) 50% of salary₹ 0
(c) Rent - 10% of salary₹ 0
HRA Exempt₹ 0
HRA Taxable₹ 0
If annual rent exceeds ₹1,00,000, landlord's PAN is mandatory for claiming HRA. Maintain rent receipts as proof.
Important conditions
- HRA must be a component of your salary structure (mentioned in Form 16 / payslip).
- You must be paying actual rent for residential accommodation (not your own house).
- Rent paid to spouse is generally not allowed.
- If staying with parents, you can pay them rent and claim HRA - but parents must declare it as rental income.
- For monthly rent above ₹50,000, employee must deduct TDS @ 2% under Section 194-IB before paying landlord (Section 393, NPC 1019 from TY 2026-27).
- HRA is NOT exempt under the New Tax Regime. Choose old regime if HRA is a significant component.
Income Tax Rules 2026 changes (from 1 Apr 2026)
- 8 metro cities for 50% HRA exemption: Bengaluru, Hyderabad, Pune and Ahmedabad added to the existing Delhi, Mumbai, Kolkata, Chennai list (Rules 2026).
- Form 124 replaces Form 12BB: Employees must furnish investment declaration including HRA evidence on the new Form 124 from 1 April 2026.
- Relationship with landlord mandatory: From 1 April 2026, you must disclose your relationship (if any) with the landlord on Form 124 to prevent abuse of the parents-as-landlord arrangement.
- Children Education / Hostel Allowance: Increased to ₹3,000 / ₹9,000 per month per child (max 2 children) under Rules 2026.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.