How is my HRA decided by my employer?

The House Rent Allowance is based on your basic salary and factors such as the type of city you reside in. In metro cities, 50% of your basic salary is considered, whereas in non-metro cities, 40% is applicable. Additional components like dearness allowance and commissions may also be taken into account.

Calculate HRA Deduction

Use the HRA deduction calculator to find the portion of your income that is exempt from tax due to house rent payments.

HRA Calculator

Basic Salary Received

Dearness Allowance (DA) Received

HRA Received

Total Rent Paid

Do you live in Delhi, Mumbai, Kolkata or Chennai?

Email Id

File your tax returns for AY 2025-2026 (FY 24-25)

31st July 2025 is the deadline to file your returns

File your Tax Return Now

Your data is safe & secure
All tax forms covered
Upload form 16 and finish efiling

For any tax filing queries, write to us at support@allindiaitr.com.

Income Tax E-filing

E-file your tax returns online

Whether it's e-filing income tax returns, applying deductions, calculating tax liability, tracking refunds or responding to tax queries, AllIndiaITR is your one-stop destination for expert solutions.

ITR e-filing

File your income tax returns online.

File Tax Return

Consult Tax Expert

Our in-house tax experts are ready to advise you on any tax-related queries.

Ask Expert

Income Tax Calculator Generate Rent Receipt Check Refund Status

An individual can claim House Rent Allowance (HRA) as an exemption from taxable income to cover rent related expenses. HRA deductions can be subtracted from income when calculating your tax liability. To avail this exemption, a salaried individual must provide the required documents, including rent receipts as proof of actual rent paid.

If a salaried individual resides in a rented apartment in a metro city, 50% of the basic salary is exempt; in a non-metro city, 40% is exempt. HRA received from the employer is generally exempt from taxes, subject to conditions.

As per section 10(13A) of the Income Tax Act 1961, an individual can calculate the HRA exemption by deducting 10% of the total salary from the actual rent paid. If no rent is paid, the HRA received becomes fully taxable.

How to use HRA Deduction Calculator

To maximize your deduction and calculate House Rent Allowance, follow these simple steps:

Go to the HRA calculator page.
Enter your basic salary.
Input your Dearness Allowance.
Provide the actual HRA received from your employer.
Enter the actual rent paid.
Select your city (metro or non-metro) accordingly.
Enter your email address.
Click on the Calculate button to view your HRA exemption details.

Frequently Asked Questions

The House Rent Allowance is determined by your basic salary and the city type. In metro cities, 50% of your basic salary is considered, while in non-metro cities, 40% is applicable. Additional factors like dearness allowance and commissions may also be factored in.

If your HRA claim is up to Rs. 3000 per month, no documentation is required. For amounts exceeding Rs. 3000 per month, you must submit rent receipts. For rents exceeding Rs. 15000 per month or Rs. 1 lakh per annum, a rental agreement and the landlord’s PAN details are necessary.

You can claim HRA exemption while also benefiting from home loan interest deductions, provided you reside in a rented property. Ensure proper documentation is maintained for both claims.

For annual rent exceeding Rs. 1 lakh, your landlord’s PAN is mandatory. Without it, you cannot claim the exemption unless you update your documentation through a formal rental agreement.

You can claim HRA exemption if you pay rent to your parents. It is advisable to have a formal rental agreement and obtain rent receipts as evidence.

If you haven't submitted your rent receipts, you can still claim HRA exemption when filing your income tax returns by adjusting your taxable income accordingly.