Question 1

How is the HRA exemption calculated?

Accepted Answer

The exemption is the lowest of three amounts: (1) the actual HRA received from your employer, (2) 50% of your basic salary plus DA if you live in a metro (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities, and (3) the rent you actually paid minus 10% of your basic salary plus DA.

Question 2

What counts as a metro city for HRA purposes?

Accepted Answer

For the 50% limit, metro means Delhi, Mumbai, Kolkata, and Chennai. All other cities, including Bengaluru, Hyderabad, Pune, and Ahmedabad, are treated as non-metro, which means the limit is 40% of basic plus DA.

Question 3

Can I claim HRA exemption while living with my parents?

Accepted Answer

Yes, if you pay rent to your parents and they show this as rental income in their tax returns. The arrangement must be genuine and documented. You cannot claim HRA if you own the property you live in.

Question 4

What if I pay rent but do not receive HRA from my employer?

Accepted Answer

If HRA is not part of your salary structure, you can still claim a deduction under Section 80GG (up to ₹60,000 per year), subject to conditions. This calculator covers the HRA exemption under Section 10(13A) only.

Question 5

Do I need to submit rent receipts to claim HRA?

Accepted Answer

If your annual rent exceeds ₹1 lakh, you must provide the landlord's PAN to claim the full exemption. Your employer typically collects rent receipts as proof during the investment declaration process.

HRA Exemption Calculator

Frequently asked questions

HRA Exemption Calculator

Frequently asked questions