Taxation

HRA Exemption

Calculate the exact portion of your House Rent Allowance that is exempt from income tax based on IT Department rules.

Your basic salary + DA (if any)

HRA component in your CTC

Total rent paid to your landlord

City Type

Metro cities: Mumbai, Delhi, Kolkata, Chennai.

Did you know?

Rent to Parents?

Yes, you can pay rent to parents to claim HRA. Ensure they declare this income and you have rent receipts.

Exempt Amount

₹1,30,000

This amount is removed from your taxable income, reducing your tax burden.

Taxable HRA₹1,10,000

Rule Breakdown

Rule 1
Actual HRA Received₹2,40,000

The amount your employer pays you as HRA

Rule 2Lowest
Excess Rent Paid₹1,30,000

Rent paid minus 10% of Basic Salary

Rule 3
50% of Basic₹2,50,000

Based on living in a Metro city

HRA Compliance Checklist

1

Rent Agreement: Ensure you have a valid, signed agreement for the financial year.

2

PAN of Landlord: Required if the total rent paid exceeds ₹1,00,000 annually.

3

Rent Receipts: Collect monthly or quarterly receipts to submit as proof to your company's finance team.

4

Section 80GG: If you don't receive HRA but pay rent, you can claim deduction under 80GG instead.