Salary Exemption
House Rent Allowance (HRA) Calculator
Salaried employees living in rented accommodation can claim tax exemption on HRA under Section 10(13A) of the Income Tax Act read with Rule 2A. Compute your eligible tax-free allowance and taxable balance instantly.
Salary & Rent Parameters Section 10(13A)
e.g. ₹15,000/month × 12 months = ₹1,80,000.
HRA Exemption Result
Eligible Tax-Exempt HRA
₹ 1,20,000
Taxable HRA Added to Income:
₹ 1,20,000
Rule 1 (Actual HRA Received):
₹ 2,40,000
Rule 2 (Rent Paid - 10% Salary):
₹ 1,20,000
Rule 3 (50% / 40% Salary Cap):
₹ 3,00,000
The 3 Statutory Rules under Rule 2A
The Income Tax Department exempts the minimum of the following three amounts:
1. Actual House Rent Allowance received from employer.
2. Actual rent paid minus 10% of (Basic Salary + eligible DA).
3. 50% of (Basic Salary + DA) for accommodation located in Delhi, Mumbai, Kolkata, or Chennai; OR 40% of (Basic Salary + DA) for all other locations.
2. Actual rent paid minus 10% of (Basic Salary + eligible DA).
3. 50% of (Basic Salary + DA) for accommodation located in Delhi, Mumbai, Kolkata, or Chennai; OR 40% of (Basic Salary + DA) for all other locations.
Mandatory Rules for Landlord PAN
Under CBDT Circular guidelines, if your total annual rent paid to the landlord exceeds ₹1,00,000 per financial year (approx. ₹8,333 per month), you must furnish the Permanent Account Number (PAN) of the landlord to your employer. If the landlord does not hold a PAN, a signed declaration in Form 60 must be submitted.
Frequently Asked Questions
No. HRA exemption under Section 10(13A) is disallowed under the default New Tax Regime (Section 115BAC). To claim HRA tax exemption, you must opt for the Old Tax Regime when filing your ITR.
Yes, provided your parents are the legal owners of the residential property. You must execute a formal rent agreement, transfer rent via bank transfer, maintain rent receipts, and your parents must declare this rental income in their respective Income Tax Returns. You cannot pay rent to your spouse.