Calculate your HRA exemption under Section 10(13A). The minimum of 3 conditions is exempt from tax. Available only under the Old Tax Regime.
| Condition | Amount |
| ① Actual HRA received | — |
| ② 50%/40% of Basic Salary | — |
| ③ Rent paid – 10% of Basic | — |
| HRA Exempt (Minimum of above) | — |
| HRA Taxable | — |
| Annual HRA Exempt | — |
The HRA exemption is the minimum of these three amounts: (1) Actual HRA received from employer, (2) 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro, (3) Actual rent paid minus 10% of basic salary.
Basic: ₹50,000/month | HRA received: ₹20,000 | Rent paid: ₹18,000 | City: Non-metro
① ₹20,000 | ② 40% × ₹50,000 = ₹20,000 | ③ ₹18,000 – ₹5,000 = ₹13,000
Minimum = ₹13,000/month is exempt. Annual exemption = ₹1,56,000.
You must actually reside in a rented accommodation. You cannot claim HRA if you own the house you live in. HRA is only available under Old Tax Regime — not available under New Tax Regime. Rent paid above ₹1,00,000/year requires the landlord's PAN.
Q: Can I claim HRA if I work from home?
A: Yes, as long as you are actually paying rent for that accommodation, HRA exemption can be claimed even while working from home.
Q: Can I claim both home loan interest and HRA?
A: Yes, if you have a home loan on a property in a different city while renting in your work city. Both deductions can be claimed simultaneously.
Q: What documents are needed for HRA claim?
A: Rent receipts, rent agreement, landlord's PAN (if rent > ₹1L/year), and declaration of actual rent paid.
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