Calculate your House Rent Allowance tax exemption under Section 10(13A)
HRA Exemption Formula:
The minimum of the following three amounts:
Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune
House Rent Allowance exemption is provided under Section 10(13A) of the Income Tax Act, 1961.
Details: Basic Salary: ₹50,000/month, HRA Received: ₹25,000/month, Rent Paid: ₹20,000/month
Calculation:
Details: Basic Salary: ₹40,000/month, HRA Received: ₹15,000/month, Rent Paid: ₹12,000/month
Calculation:
The House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act allows salaried individuals to claim tax benefits on the rent paid for accommodation. This section provides significant relief to taxpayers living in rented premises.
HRA (House Rent Allowance) is a component of salary that provides tax exemption for rent paid. It's calculated as the minimum of: actual HRA received, 50%/40% of basic salary, or rent paid minus 10% of basic salary.
Metro cities include Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, and Pune. These cities qualify for 50% of basic salary limit instead of 40%.
No, you cannot claim HRA exemption if you live in your own house. The exemption is only available for rented accommodation where you actually pay rent.
You need rent receipts, rental agreement, landlord's address and PAN (if annual rent exceeds ₹1 lakh), and Form 12BB declaration to your employer.
There's no upper limit on HRA exemption amount. However, it cannot exceed the actual HRA received or the calculated limits based on salary and rent paid.