HRA Exemption Rules in India
Under Section 10(13A) of the Income Tax Act, salaried individuals living in rented accommodation can claim tax exemption on their House Rent Allowance (HRA). The amount of exemption is the minimum of the following three conditions:
- Actual HRA received from the employer.
- 50% of (Basic + DA) if living in a metro city (Delhi, Mumbai, Kolkata, or Chennai), or 40% for non-metro cities.
- Actual rent paid minus 10% of (Basic + DA) salary.
Documents Required to Claim HRA
While you don't need to submit documents to use this calculator, you will need the following for your tax filing:
- Rent Receipts: Signed by the landlord.
- Rent Agreement: Valid and updated agreement.
- PAN of Landlord: Mandatory if annual rent exceeds ₹1 lakh.
How to Use the HRA Calculator
Simply enter your monthly figures:
- Basic Salary: Your base monthly pay as per your salary slip.
- DA (Dearness Allowance): Include this if it forms part of your retirement benefits.
- HRA Received: The actual HRA amount shown on your salary slip.
- Rent Paid: The actual amount you pay to your landlord every month.
- City Type: Select Metro if you live in Delhi, Mumbai, Kolkata, or Chennai.
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Disclaimer: This calculator is for educational purposes. Tax laws can be complex and are subject to change by the government. Always consult a qualified Chartered Accountant (CA) or tax professional before filing your returns.