Find out how much of your house rent allowance escapes tax under section 10(13A), using the three limb rule the law prescribes.
Find how much of your house rent allowance is tax free under the old regime. Enter annual amounts.
How HRA Exemption is Calculated
The exempt amount is the lowest of three figures: the HRA you actually received, rent paid minus 10 percent of basic salary plus DA, and 50 percent of basic plus DA in metro cities (40 percent elsewhere). Whatever remains of your HRA after the exemption is taxable as salary.
Documents That Protect Your HRA Claim
Keep rent receipts and the rent agreement, pay rent through bank transfer rather than cash where possible, and collect your landlord’s PAN if annual rent exceeds one lakh rupees. Claims without this paper trail are the ones that fail in scrutiny.
HRA and the New Regime
HRA exemption is available only under the old tax regime. If your HRA and other deductions are large, the old regime may beat the new one, which you can verify in our income tax calculator or have us confirm when filing your return.