HRA Calculator

HRA exemption under Section 10(13A) allows salaried employees to exclude a portion of their HRA from taxable income. The exempt amount is the minimum of: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% of basic (non-metro). Only available under the Old Tax Regime. You must actually be paying rent to a landlord — no exemption if living in own property or not paying rent.

No. The New Tax Regime does not allow any exemptions or deductions under Section 10(13A). If you opt for the New Regime, the entire HRA received is added to your taxable income. This is one of the key trade-offs — the New Regime offers lower slab rates (and better 87A rebate) but removes HRA, 80C, and most other deductions.

Exactly four cities: Delhi (including NCR areas like Gurgaon and Noida... actually NO — only Delhi city proper qualifies; Gurgaon and Noida are separately non-metro), Mumbai (Bombay), Kolkata (Calcutta), and Chennai (Madras). If you live in any of these four, 50% of basic salary is used in the third formula component.

No. Despite their size, Bangalore, Hyderabad, Pune, Gurgaon, Noida, and Ahmedabad are all Non-Metro for HRA purposes under current Income Tax Rules. This means 40% of basic salary (not 50%) applies. This is a common and costly mistake — employees in these cities often incorrectly claim 50%, which can lead to a tax demand during scrutiny.

Yes, this is a legitimate strategy. Pay rent via bank transfer (not cash), obtain signed rent receipts, sign a rent agreement, and submit Form 12BB. Your parents must declare this rent income in their ITR under "Income from House Property." The property must be in their name. Both spouses cannot claim HRA on the same property simultaneously.

Yes. Your employer requires rent receipts via Form 12BB to grant HRA exemption for TDS purposes. Monthly or quarterly receipts are needed. If annual rent exceeds ₹1,00,000, you must also provide the landlord's PAN. Retain all receipts for at least 6 years — the Income Tax Department can request them during scrutiny even years after filing.

Landlord's PAN is mandatory under Rule 26C. Even if you pay rent to your parents, their PAN is required. Submit it with Form 12BB. If PAN is unavailable, the landlord must provide a self-declaration. Failure to submit PAN may cause your employer to exclude the HRA claim from TDS computation, resulting in higher monthly TDS deduction.

Yes, under the Old Regime, in certain situations. If you own a house in City A but work in City B and rent there, you can claim: HRA exemption for City B rent + Section 24(b) home loan interest deduction for City A property. If the owned and rented property are in the same city, the dual claim may be scrutinized. Document the genuine business necessity of renting in the same city.

Claim Section 80GG deduction — available if you don't receive HRA (or are self-employed). The deduction is the least of: ₹5,000 per month (₹60,000/year), 25% of total income, or rent paid minus 10% of income. Condition: neither you, your spouse, nor your minor child should own a house in the city where you work. This is available under the Old Regime only.

Calculate each city period separately. For each period: pro-rate the salary and rent by months, apply metro (50%) or non-metro (40%) rate as applicable, compute the least-of-three for that period. Then add all period exemptions for the total annual exemption. Use this calculator's "Partial Year / Multiple Cities" mode to handle this automatically with date pickers.