HRA exemption calculator
Calculate how much House Rent Allowance can be exempt under the old tax regime. The result can be included in the old-regime deductions and exemptions field of the tax-regime comparison calculator.
1.8 lakh
Add this exemption amount to your old-regime deduction/exemption total when comparing tax regimes.
Formula breakdown
HRA exemption is the lowest of the following three values.
| Component | Amount |
|---|
Documents to keep for HRA
HRA is useful only if you are paying rent and choose the old tax regime. During Form 16 season, employers usually rely on rent receipts, rent agreement and landlord details submitted through Form 12BB or the payroll portal.
- Monthly or annual rent receipts.
- Rent agreement, where available.
- Landlord PAN if annual rent exceeds ₹1 lakh.
- Payment proof if your employer or CA asks for it.
Related tax tools
FAQs
Can I claim HRA in the new tax regime? v
No. HRA exemption is generally an old-regime benefit. If you choose the new tax regime, common exemptions such as HRA are not available.
Which cities count as metro for HRA? v
For HRA calculation, metro means Delhi, Mumbai, Kolkata and Chennai. These use 50% of salary. Other cities use 40% of salary.
What salary is used for HRA calculation? v
Salary for HRA usually means basic salary plus dearness allowance to the extent it enters retirement benefits. Most salaried users can start with annual basic salary and add DA only if applicable.
Do I need landlord PAN for HRA? v
If annual rent exceeds ₹1 lakh, employers generally ask for the landlord PAN. Keep rent receipts, rent agreement and payment proof where applicable.