Find out exactly how much House Rent Allowance is tax-exempt. Uses all 3 rules as per Section 10(13A) — automatically picks the minimum for maximum accuracy.
ClearTax auto-imports Form 16, calculates your exact HRA exemption, and helps you file ITR in minutes. Trusted by 60 lakh+ taxpayers.
File ITR Free on ClearTax → Try Quicko — CA-assisted ITR filingHRA exemption = minimum of: (1) Actual HRA received from employer, (2) 50% of Basic Salary for metro cities (Mumbai, Delhi, Chennai, Kolkata) or 40% for non-metro cities, (3) Actual rent paid minus 10% of Basic Salary. The lowest of these three values is your tax-exempt HRA.
No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. If you opt for the New Tax Regime (with lower slab rates and higher rebate), you cannot claim HRA or most deductions. Choose the regime that gives you the lowest overall tax.
Yes, you can legitimately pay rent to your parents and claim HRA exemption. Your parents must declare this rental income in their tax return. This is especially beneficial if parents are in a lower income tax bracket (e.g., below taxable limit). Ensure you have a proper rent agreement and pay via bank transfer.
Monthly rent receipts (or annual receipt), rent agreement, landlord's PAN (mandatory if annual rent exceeds ₹1 lakh), and Form 12BB submitted to your employer. Maintain these records for at least 6 years in case of income tax scrutiny or assessment.
If annual rent paid exceeds ₹1,00,000 (₹8,333/month), you must provide your landlord's PAN card details to your employer. The employer will report this in Form 12BB. Without landlord's PAN, your employer may deduct TDS at 20% on rent payments as per Income Tax Rule 26C.