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How is Exemption on HRA Calculated? - Complete Info
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href="/credit-card/best-co-branded-credit-cards-in-india.html" title="Co-branded Credit Cards" aria-label="Co-branded Credit Cards">Co-branded Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/rbl-bank-bankbazaar-savemax-credit-card.html" title="RBL SaveMax Credit Card" aria-label="RBL SaveMax Credit Card">RBL SaveMax Credit Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/finbooster-yes-bank-bankbazaar-co-branded-credit-card.html " title="Yes Bank FinBooster Credit Card" aria-label="Yes Bank FinBooster Credit Card">Yes Bank FinBooster Credit Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-credit-card.html" title="HDFC Credit Cards" aria-label="HDFC Credit Cards">HDFC Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-credit-card.html" title="SBI Credit Cards" aria-label="SBI Credit Cards">SBI Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/indusind-credit-card.html" title="Indusind Bank Credit cards" aria-label="Indusind Bank Credit cards">Indusind Bank Credit cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/top-10-credit-cards-in-india.html" title="Top 10 Credit Cards" aria-label="Top 10 Credit Cards">Top 10 Credit Cards</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-school mr-2 h-full"><path d="M14 22v-4a2 2 0 1 0-4 0v4"></path><path d="m18 10 4 2v8a2 2 0 0 1-2 2H4a2 2 0 0 1-2-2v-8l4-2"></path><path d="M18 5v17"></path><path d="m4 6 8-4 8 4"></path><path d="M6 5v17"></path><circle cx="12" cy="9" r="2"></circle></svg>Home Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan.html" title="Compare Home Loans" aria-label="Compare Home Loans">Compare Home Loans</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/emi-calculator.html" title="Home Loan Calculator" aria-label="Home Loan Calculator">Home Loan Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-interest-rate.html" title="Home Loan Interest Rates" aria-label="Home Loan Interest Rates">Home Loan Interest Rates</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-eligibility.html" title="Home Loan Eligibility" aria-label="Home Loan Eligibility">Home Loan Eligibility</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-balance-transfer.html" title="Home Loan Transfer" aria-label="Home Loan Transfer">Home Loan Transfer</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/pradhan-mantri-awas-yojana.html" title="PMAY" aria-label="PMAY">PMAY</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-home-loan.html" title="SBI Home Loan" aria-label="SBI Home Loan">SBI Home Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-home-loan.html" title="HDFC Home Loan" aria-label="HDFC Home Loan">HDFC Home Loan</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Personal Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan.html" title="Compare Personal Loans" aria-label="Compare Personal Loans">Compare Personal Loans</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan/emi-calculator.html" title="Personal Loan Calculator" aria-label="Personal Loan Calculator">Personal Loan Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan-interest-rate.html" title="Personal Loan Interest Rates" aria-label="Personal Loan Interest Rates">Personal Loan Interest Rates</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan-eligibility.html" title="Personal Loan Eligibility" aria-label="Personal Loan Eligibility">Personal Loan Eligibility</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-personal-loan.html" title="SBI Personal Loan" aria-label="SBI Personal Loan">SBI Personal Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-personal-loan.html" title="HDFC Personal Loan" aria-label="HDFC Personal Loan">HDFC Personal Loan</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Other Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/car-loan.html" title="Car Loan" aria-label="Car Loan">Car Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/two-wheeler-loan.html" title="Two Wheeler Loan" aria-label="Two Wheeler Loan">Two Wheeler Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/education-loan.html" title="Education Loan" aria-label="Education Loan">Education Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gold-loan.html" title="Gold Loan" aria-label="Gold Loan">Gold Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/loan-against-property.html" title="Loan Against Property" aria-label="Loan Against Property">Loan Against Property</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-calculator mr-2 h-full"><rect width="16" height="20" x="4" y="2" rx="2"></rect><line x1="8" x2="16" y1="6" y2="6"></line><line x1="16" x2="16" y1="14" y2="18"></line><path d="M16 10h.01"></path><path d="M12 10h.01"></path><path d="M8 10h.01"></path><path d="M12 14h.01"></path><path d="M8 14h.01"></path><path d="M12 18h.01"></path><path d="M8 18h.01"></path></svg>Calculators<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/finance-tools/emi-calculator.html" title="EMI Calculator" aria-label="EMI Calculator">EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/emi-calculator.html" title="Home Loan EMI Calculator" aria-label="Home Loan EMI Calculator">Home Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan/emi-calculator.html" title="Personal Loan EMI Calculator" aria-label="Personal Loan EMI Calculator">Personal Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/car-loan/emi-calculator.html" title="Car Loan EMI Calculator" aria-label="Car Loan EMI Calculator">Car Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/income-tax-calculator.html" title="Income Tax Calculator" aria-label="Income Tax Calculator">Income Tax Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/fixed-deposit/fd-calculator.html" title="FD Calculator" aria-label="FD Calculator">FD Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/recurring-deposit/rd-interest-calculator.html" title="RD Calculator" aria-label="RD Calculator">RD Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/calculators.html" title="All Financial Calculators" aria-label="All Financial Calculators">All Financial Calculators</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Investments<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/fixed-deposit-rate.html" title="Fixed Deposit" aria-label="Fixed Deposit">Fixed Deposit</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/recurring-deposit-rates.html" title="Recurring Deposit" aria-label="Recurring Deposit">Recurring Deposit</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/savings-account.html" title="Savings Account" aria-label="Savings Account">Savings Account</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/saving-schemes.html" title="Saving Schemes" aria-label="Saving Schemes">Saving Schemes</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gold-rate-india.html" title="Gold Rate" aria-label="Gold Rate">Gold Rate</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/silver-rate-india.html" title="Silver Rate" aria-label="Silver Rate">Silver Rate</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/mutual-fund.html" title="Mutual Funds" aria-label="Mutual Funds">Mutual Funds</a></li></ul></div></details></div><span><a href="/credit-score.html" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 minW-auto bg-inherit text-inherit hover:bg-inherit no-underline h-auto text-wrap font-medium focus-visible:ring-0 w-full py-4"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-wallet-cards mr-2 h-full"><rect width="18" height="18" x="3" y="3" rx="2"></rect><path d="M3 9a2 2 0 0 1 2-2h14a2 2 0 0 1 2 2"></path><path d="M3 11h3c.8 0 1.6.3 2.1.9l1.1.9c1.6 1.6 4.1 1.6 5.7 0l1.1-.9c.5-.5 1.3-.9 2.1-.9H21"></path></svg><span class="flex-auto "><strong><p class="text-sm ">Credit Score</p></strong></span><img src="https://static.bankbazaar.com/images/common/bbicons-menu-free-badge.webp" alt="FREE" title="FREE" width="40" height="20" style="max-width:100%;display:inline"/></a></span><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-file-text mr-2 h-full"><path d="M15 2H6a2 2 0 0 0-2 2v16a2 2 0 0 0 2 2h12a2 2 0 0 0 2-2V7Z"></path><path d="M14 2v4a2 2 0 0 0 2 2h4"></path><path d="M10 9H8"></path><path d="M16 13H8"></path><path d="M16 17H8"></path></svg>Govt. Utility Documents<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/pan-card.html" title="Pan Card" aria-label="Pan Card">Pan Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/aadhar-card.html" title="Aadhaar Card" aria-label="Aadhaar Card">Aadhaar Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/voter-id.html" title="Voter ID" aria-label="Voter ID">Voter ID</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/electricity-bill.html" title="Electricity Bill" aria-label="Electricity Bill">Electricity Bill</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/driving-licence.html" title="Driving Licence" aria-label="Driving Licence">Driving Licence</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/passport.html" title="Passport" aria-label="Passport">Passport</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/visa.html" title="Visa" aria-label="Visa">Visa</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gas-connection.html" title="Gas Connection" aria-label="Gas Connection">Gas Connection</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/ration-card.html" title="Ration Card" aria-label="Ration Card">Ration Card</a></li></ul></div></details></div><span><a href="/getapp.html" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 minW-auto bg-inherit text-inherit hover:bg-inherit no-underline h-auto text-wrap font-medium focus-visible:ring-0 w-full py-4"><span class="mr-2"><img src="https://static.bankbazaar.com/images/common/bbicons-menu-download-app.webp" alt="Download App" title="Download App" width="25" height="28" style="max-width:100%;display:inline"/></span><span class="flex-auto "><strong><p class="text-sm ">Download Mobile App</p></strong></span><img src="https://static.bankbazaar.com/images/common/bbicons-menu-android-star-badge.webp" alt="Badge" title="Badge" width="12" height="20" style="max-width:100%;display:inline"/></a></span><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-umbrella mr-2 h-full"><path d="M22 12a10.06 10.06 1 0 0-20 0Z"></path><path d="M12 12v8a2 2 0 0 0 4 0"></path><path d="M12 2v1"></path></svg>Insurance<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 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border border-slate-200 text-slate-950 shadow-sm dark:border-slate-800 dark:bg-slate-950 dark:text-slate-50 relative bg-primary-light"><div class="p-2.5"><div class="pr-md font-large" style="max-height:500px;overflow-y:auto"><p class="text-base ">House Rent Allowance (HRA) is a significant taxable element of a pay slip. It is the amount that a company provides to their employees to help with living expenses when they are renting a property.</p></div></div></div><div><div class="mb-xl"><span style="background-color:#ffff009c" class="mb-xl"></span></div><div class="flex flex-col gap-1"><p class="text-base ">The HRA varies depending on the city. Additionally, it varies based on the city's cost of living. According to section 10, the amount received as a portion of the <a href="/tax/house-rent-allowance.html" target="_blank">House Rent Allowance</a> (HRA) may be subtracted from the taxable salary (13A).</p><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><h2 class="text-lg font-bold pt-5">What is HRA Tax Exemption?</h2><p class="text-base ">According to the Income Tax Act of 1961, a portion of an employee's HRA is exempt from taxation, and the remainder is taxable.</p></div><div><div class="flex flex-col gap-1"><p class="text-base ">To determine the amount of HRA that may be deducted from the total salary, a set of criteria must be met. Determining the deductions is part of the HRA income tax calculation.</p><div class="text-center mt-4 mb-4"><a href="/tax/hra-calculator.html" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="HRA Exemption Calculator">HRA Exemption Calculator</a></div><p class="text-base ">You cannot use HRA if you reside in a home that you own because it is intended to cover the cost of your rented housing.</p><h2 class="text-lg font-bold pt-5">How is Exemption on HRA is Calculated?</h2><p class="text-base ">HRA is mainly determined by your salary. As per the <a href="/tax/income-tax-rules.html" target="_blank">income tax rules</a>, the tax-exempt is part of the HRA (House Rent Allowance). The factors listed below determine how the HRA is calculated:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Rent paid</strong>: The actual rent you paid for living in the residence. You can’t claim HRA if you stay in a hotel. You will need rent receipts, bank statements and lease agreements to prove that you are paying rent.</li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Salary</strong>: The different salary components such as basic salary, your <a href="/tax/dearness-allowance.html" target="_blank">Dearness allowance</a> (DA), and special allowances play a role in determining your HRA.</li><li class="pt-1 pb-1"><strong>Residence</strong>: The city you live in can affect your HRA. If you live in a metropolitan city then the HRA should not exceed 50% of your basic salary and 40% of your basic salary if you reside in a non-metropolitan city.</li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>HRA from the Employer</strong>: The actual HRA you receive from your employer is an important factor in calculating HRA deductions.</li></ol><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check Your Credit Score for FREE">Check Your Credit Score for FREE</a></div><div data-inline-ad-position="HUNGRY_FOR_MORE"></div><h3 class="text-md font-bold pt-5">HRA Calculation with Example</h3><p class="text-base ">Let us consider the scenario of a salaried individual, Mr. Ganesh, who resides in Delhi. He lives in rented accommodation and pays a monthly rent of Rs.10,000. This amounts to Rs.1.2 lakh annually. The table below shows his monthly earnings:</p><div class="relative w-full overflow-auto"><table class="w-full caption-bottom text-sm border"><thead class="[&_tr]:border-b font-bold"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Components</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Amount</p></td></tr></thead><tbody class="[&_tr:last-child]:border-0"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base "><a href="/tax/basic-salary.html" target="_blank">Basic Salary</a></p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.30,000</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">HRA</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.13,000</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base "><a href="/tax/conveyance-allowance.html" target="_blank">Conveyance Allowance</a></p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.2,000</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base "><a href="/tax/special-allowance.html" target="_blank">Special Allowance</a></p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.3,000</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base "><a href="/tax/leave-travel-allowance.html" target="_blank">Leave Travel Allowance</a> (LTA)</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.5,000</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Total Earnings</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Rs.53,000</p></td></tr></tbody></table></div><p class="text-base ">In Mr. Ganesh's example, the tax-exempt part of his HRA would be the lowest of the following, considering his earnings on an annual basis:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">Actual HRA component of salary: (Rs.13,000 * 12) = Rs.1.56 lakh </li><li class="pt-1 pb-1">50% of his basic salary, as he stays in Delhi: (50% * Rs.30,000 * 12) = Rs.1.80 lakh </li><li class="pt-1 pb-1">Actual rent paid minus 10% of basic salary: (Rs.10,000 * 12) - (10% * Rs.30,000 * 12) = Rs.1.2 lakh – Rs.36,000 = Rs.84,000 </li></ol><p class="text-base ">Since Rs.84,000 is the lowest value above, this is the amount of tax-exemption Mr. Ganesh can receive on HRA. The rest of the HRA amount received will be taxed as per his <a href="/tax/income-tax-slabs.html" target="_blank">income tax slab</a>.</p><div class="text-center px-2.5 py-1"><iframe data-testid="video-test-id" loading="lazy" class="lazy-loaded" style="max-width:100%" src="https://www.youtube.com/embed/CUHATMJX7Io" width="720" height="405" title="How To Calculate HRA Exemption For Income Tax | Step-by-Step Explanation With Example" name="How To Calculate HRA Exemption For Income Tax | Step-by-Step Explanation With Example" frameBorder="0" allowFullScreen=""></iframe><script type="application/ld+json" data-testid="video-json-ld">{"@context":"https://schema.org","@type":"VideoObject","name":"How To Calculate HRA Exemption For Income Tax | Step-by-Step Explanation With Example","description":"This video can quickly help you answer the question, \"how do I calculate my HRA exemption?\"\n\nIf you are staying in a rented accommodation, then you are entitled to claim this under Section 10 (13A) of the Income-tax Act, 1961.\n\nThese are the three formulas used to determine your HRA exemption:\n\nI. Actual House Rent Allowance Received\nII. Rent – 10% Basic Salary\nIII. 50% Of basic salary if you live in a metro. If you live in a non-metro, then you must consider 40%.\n\nRemember, the lowest amount from among these is the tax exempt part of your House Rent Allowance.\n\nExample:\n\nLet’s assume you live in Mumbai (metro)\nRent: Rs. 10,000 per month\nBasic salary: Rs. 30,000 per month \nActual HRA: Rs. 13,000 per month.\n\nThis means your annual rent is 10,000 x 12 = Rs. 1,20,000\nYour annual basic salary is 30,000 x 12 = Rs. 3,60,000\nActual HRA for the year is 13,000 x 12 = Rs. 1,56,000\n\nNow let’s put these numbers into the three formulas.\n\nActual HRA received = Rs. 1,56,000\nRent - 10% basic salary is 120,000 - 36,000 = Rs. 84,000\n50% Basic Salary is 0.5 x 3,60,00 = Rs. 180,000\n\nAs you can see, the lowest among these is Rs. 84,000, and that is the amount that you can claim as HRA exemption.","thumbnailUrl":"https://i.ytimg.com/vi/CUHATMJX7Io/sddefault.jpg","uploadDate":"2019-05-09T09:15:29Z","duration":"PT1M24S","keywords":["hra","hra calculation","how to calculate hra","hra exemption","house rent allowance","house rent allowance income tax","hra income tax"],"contentUrl":"https://youtube.com/watch/?v=CUHATMJX7Io","embedUrl":"https://www.youtube.com/embed/CUHATMJX7Io","commentCount":"0","interactionCount":"19020"}</script></div><h2 class="text-lg font-bold pt-5">HRA in New Tax Regime</h2><p class="text-base ">The<a href="/tax/income-tax-slabs.html" target="_blank"> new tax regime</a> has witnessed a lot of changes when compared to the old regime. However, one of the biggest changes that are to be pointed out is the fact that the new regime will not have some of the exemptions or deductions from the last tax regime. These include the House Rent Allowance or HRA as well. Thus, if you opt for the new tax regime and file your <a href="/tax.html" target="_blank">taxes </a>accordingly, you will not be able to enjoy the deduction for HRA.</p><div class="mb-2.5 py-1"><div class="grid grid-cols-12 gap-2.5"><div class=" lg:col-span-12 md:col-span-12 col-span-12"><div class="border bg-transparent hover:bg-transparent"><details name="accordion" class="px-2.5 py-2.5"><summary class="cursor-pointer block relative"><strong>Related Articles on Tax<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ol class="list-disc list-outside ml-4 mr-4 columns-3"><li class=""><a href="/income-tax.html" title="Income Tax" target="_black">Income Tax</a></li><li class=""><a href="/tax/income-tax-act.html" title="Income Tax Act" target="_black">Income Tax Act</a></li><li class=""><a href="/tax/income-tax-slabs.html" title="Income Tax Slabs" target="_black">Income Tax Slabs</a></li><li class=""><a href="/tax/efiling-income-tax.html" title="Efiling Income Tax" target="_black">Efiling Income Tax</a></li><li class=""><a href="/tax/income-tax-return.html" title="Income Tax Return" target="_black">Income Tax Return</a></li><li class=""><a href="/tax/tds-online-payment.html" title="TDS Online Payment" target="_black">TDS Online Payment</a></li><li class=""><a href="/tax/income-tax-refund.html" title="Income Tax Refund" target="_black">Income Tax Refund</a></li><li class=""><a href="/tax/step-by-step-guide-efile-income-tax-return-online.html" title="Steps to efiling ITR online" target="_black">Steps to efiling ITR online</a></li><li class=""><a href="/tax/gratuity.html" title="Gratuity" target="_black">Gratuity</a></li><li class=""><a href="/tax/tds-online-payment.html" title="TDS Online Payment Process" target="_black">TDS Online Payment Process</a></li><li class=""><a href="/tax/gst.html" title="GST" target="_black">GST</a></li><li class=""><a href="/tax/gst-returns.html" title="GST Returns" target="_black">GST Returns</a></li><li class=""><a href="/tax/7th-pay-commission.html" title="7th Pay Commission" target="_black">7th Pay Commission</a></li><li class=""><a href="/tax/all-about-tds.html" title="TDS" target="_black">TDS</a></li><li class=""><a href="/tax/form-16.html" title="Form 16" target="_black">Form 16</a></li></ol></div></details></div></div></div></div><h2 class="text-lg font-bold pt-5">Eligibility to Claim Tax Deduction on HRA</h2><p class="text-base ">If the following requirements are satisfied, a portion of HRA may be claimed as a tax deduction under Section 10(13A) of the Income Tax Act: </p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">Your name should be on the rent receipt (indicating that you are paying the rent for the house). </li><li class="pt-1 pb-1">HRA should be a component of your pay slip. </li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">You should be a salaried/paid employee. </li><li class="pt-1 pb-1">You should reside in a rented home. </li></ol><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><div data-inline-ad-position="HUNGRY_FOR_MORE"></div><h2 class="text-lg font-bold pt-5">Required Documents to Claim HRA Tax Exemption</h2><p class="text-base ">You will have to submit the following documents to claim HRA tax exemption:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">Rental receipts that reflect the rent required to calculate HRA deductions or the rental agreement that specifies the corresponding rent amount.</li><li class="pt-1 pb-1">A copy of the landlord's PAN card or a declaration form with their signature is also needed if the rent exceeds Rs.1 lakh per year. The same documentation will be required for parents' or family members' rent payments in order to <a href="/tax/hra-calculator.html" target="_blank">calculate HRA tax</a>.</li></ol><h2 class="text-lg font-bold pt-5">Can I claim tax exemption on HRA and deduction on home loan interests at the same time?</h2><p class="text-base ">Yes, this is possible. You may be living in a rented house in one city while you own a house (for which you are repaying a <a href="/home-loan.html" target="_blank">home loan</a>) in another city.</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">You can claim tax exemption on HRA for the rent paid.</li><li class="pt-1 pb-1">You can also claim tax deduction on the home loan interest paid.</li><li class="pt-1 pb-1">Tax deduction can be claimed on home loan principal repayment as well.</li></ol><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13225&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13225" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check Your Credit Score for FREE">Check Your Credit Score for FREE</a></div></div><h2 class="text-lg font-bold pt-4">FAQs on HRA Calculation</h2><ul class="list-decimal list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>What is the formula for calculating HRA?</strong><p class="text-base ">The employee's actual rent payment is 10% of their base pay, or employer's actual HRA offered, or 50% of the basic salary for a residential house in a metropolitan city and 40% of the salary if the employee resides in a non-metropolitan city.</p></li><li class="pt-1 pb-1"><strong>Is it necessary to submit my landlord’s PAN card to claim HRA deduction?</strong><p class="text-base ">If you pay more than Rs 1 lakh in annual rent, the landlord's PAN is necessary to qualify for HRA exemption. In the absence of a PAN in the landlord's name, a signed statement should be submitted.</p></li><li class="pt-1 pb-1"><strong>Can I claim for HRA exemption if I am living with my parents?</strong><p class="text-base ">Yes, you can claim HRA exemption if you are living with your parents and can provide a rent receipt in their name. However, when it comes time to filing their income tax returns, your parents must include the same rent as part of their income. </p></li><li class="pt-1 pb-1"><strong>Can I pay rent to my spouse and claim for HRA deduction on it?</strong><p class="text-base ">No, you are not permitted to a deduction in HRA if you pay rent to your spouse. </p></li><li class="pt-1 pb-1"><strong>Can I save Tax if I don’t receive HRA?</strong><p class="text-base ">Yes, if you continue to live in a rented home, you can save taxes even if your pay stub does not include HRA or if you work for yourself. Section 80GG of the Income Tax Act allows you to deduct the least of the following from your taxes: 25% of your gross annual income; actual rent paid (10% of total income); Rs. 60,000 per year; or Rs. 5,000 per month.</p></li><li class="pt-1 pb-1"><strong>Can I deduct HRA from my taxes even though I own a home?</strong><p class="text-base ">Yes, in certain cases where you live in a rented house in a different city from the city you own a house in. </p></li><li class="pt-1 pb-1"><strong>I don’t have rent receipts. Can I still claim HRA deductions? </strong><p class="text-base ">Yes, provided you have a rent/lease agreement and bank statements supporting your claim. </p></li><li class="pt-1 pb-1"><strong>How can I calculate HRA deductions?</strong><p class="text-base ">The Income Tax Department’s HRA calculator is a good option to calculate the amount of claimable deduction u/s 10(13A) of the Income Tax Act. </p></li><li class="pt-1 pb-1"><strong>Can I still claim for HRA deduction if my house is currently being built, so I've rented another place in the same city?</strong><p class="text-base ">Yes, you can claim for HRA deduction if you are paying rent and your own house is still under construction. </p></li><li class="pt-1 pb-1"><strong>I have forgotten to submit rent receipts to my employer. How can I claim HRA tax benefit now?</strong><p class="text-base ">In this case, you can claim the tax benefit on HRA at the time of filing income tax returns. You will have to keep the proof of rent payment handy, as you may be required to submit these documents to the Income Tax department to authenticate your claim.</p></li><li class="pt-1 pb-1"><strong>Can anyone claim tax exemption on HRA?</strong><p class="text-base ">No, not everyone can claim tax exemption on HRA. Although HRA is part of the salary of most employed individuals, the exemption can only be availed by those who pay rent. HRA exemption is also not applicable for self-employed individuals.</p></li><li class="pt-1 pb-1"><strong>Can I claim HRA tax exemption when paying rent to a family member?</strong><p class="text-base ">You can claim tax exemption on HRA if you are paying rent to your parents. However, you should have sufficient documents that serve as proof of this transaction.</p></li><li class="pt-1 pb-1"><strong>HRA is not part of my salary, but I stay in a rented accommodation. Can I get any tax benefits?</strong><p class="text-base ">If an individual pays rent for an unfurnished/furnished house, he/she can claim tax deduction on the rent paid (under Section 80 (GG) of the Income Tax Act), provided HRA is not part of his/her salary. He/she should furnish Form 10B for this purpose.</p></li><li class="pt-1 pb-1"><strong>Can the maintenance charges that I pay for my apartment be included for HRA tax exemption?</strong><p class="text-base ">No, HRA exemption can be claimed only for the rent paid. You won't be able to claim a tax deduction for the maintenance or electricity charges. These charges are also not considered as the landlord's earnings when calculating his/her <a href="/income-tax.html" target="_blank">income tax</a>.</p></li></ul><script type="application/ld+json" data-testid="faq-json-ld">{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is the formula for calculating HRA?","acceptedAnswer":{"@type":"Answer","text":"The employee's actual rent payment is 10% of their base pay, or employer's actual HRA offered, or 50% of the basic salary for a residential house in a metropolitan city and 40% of the salary if the employee resides in a non-metropolitan city."}},{"@type":"Question","name":"Is it necessary to submit my landlord’s PAN card to claim HRA deduction?","acceptedAnswer":{"@type":"Answer","text":"If you pay more than Rs 1 lakh in annual rent, the landlord's PAN is necessary to qualify for HRA exemption. 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You will have to keep the proof of rent payment handy, as you may be required to submit these documents to the Income Tax department to authenticate your claim."}},{"@type":"Question","name":"Can anyone claim tax exemption on HRA?","acceptedAnswer":{"@type":"Answer","text":"No, not everyone can claim tax exemption on HRA. Although HRA is part of the salary of most employed individuals, the exemption can only be availed by those who pay rent. HRA exemption is also not applicable for self-employed individuals."}},{"@type":"Question","name":"Can I claim HRA tax exemption when paying rent to a family member?","acceptedAnswer":{"@type":"Answer","text":"You can claim tax exemption on HRA if you are paying rent to your parents. However, you should have sufficient documents that serve as proof of this transaction."}},{"@type":"Question","name":"HRA is not part of my salary, but I stay in a rented accommodation. Can I get any tax benefits?","acceptedAnswer":{"@type":"Answer","text":"If an individual pays rent for an unfurnished/furnished house, he/she can claim tax deduction on the rent paid (under Section 80 (GG) of the Income Tax Act), provided HRA is not part of his/her salary. He/she should furnish Form 10B for this purpose."}},{"@type":"Question","name":"Can the maintenance charges that I pay for my apartment be included for HRA tax exemption?","acceptedAnswer":{"@type":"Answer","text":"No, HRA exemption can be claimed only for the rent paid. You won't be able to claim a tax deduction for the maintenance or electricity charges. These charges are also not considered as the landlord's earnings when calculating his/her <a href=\"/income-tax.html\" target=\"_blank\">income tax</a>."}}]}</script><script type="application/ld+json" data-testid="organization-json-ld">{"@context":"http://schema.org","@type":"Organization","name":"BankBazaar","url":"https://www.bankbazaar.com/","logo":"https://static.bankbazaar.com/images/bankbazaar-logo.png","sameAs":["https://www.facebook.com/bankbazaar/","https://twitter.com/bankbazaar","https://www.instagram.com/bankbazaar/","https://www.linkedin.com/company/417362/","https://www.youtube.com/@BankBazaar","https://in.linkedin.com/company/bank_bazaar"]}</script></div></div></div></div></div><div class="py-5"><div class="border bg-transparent hover:bg-transparent"><details name="accordion" class="px-2.5 py-2.5"><summary class="cursor-pointer block relative"><strong>Disclaimer<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5">Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. 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aria-label="Experian">Experian</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/cibil/cibil-credit-score.html" title="CIBIL Score" aria-label="CIBIL Score">CIBIL Score</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/cibil/cibil-credit-report.html" title="CIBIL Report" aria-label="CIBIL Report">CIBIL Report</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/cibil/cibil-score-calculation.html" title="CIBIL Score Calculation" aria-label="CIBIL Score Calculation">CIBIL Score Calculation</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/cibil/how-to-improve-cibil-credit-score.html" title="How to Improve Credit Score" aria-label="How to Improve Credit Score">How to Improve Credit Score</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline 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href="/fixed-deposit/hdfc-fixed-deposit.html" title="HDFC Fixed Deposit" aria-label="HDFC Fixed Deposit">HDFC Fixed Deposit</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/fixed-deposit/axis-fixed-deposit.html" title="Axis Fixed Deposit" aria-label="Axis Fixed Deposit">Axis Fixed Deposit</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/fixed-deposit/post-office-fixed-deposit-rate.html" title="Post Office Fixed Deposit" aria-label="Post Office Fixed Deposit">Post Office Fixed Deposit</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/fixed-deposit/senior-citizen-fixed-deposit.html" title="Senior Citizen Fixed Deposit" aria-label="Senior Citizen Fixed Deposit">Senior Citizen Fixed Deposit</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" 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Calculator</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/personal-loan/emi-calculator.html" title="Personal Loan EMI Calculator" aria-label="Personal Loan EMI Calculator">Personal Loan EMI Calculator</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/car-loan/emi-calculator.html" title="Car Loan EMI Calculator" aria-label="Car Loan EMI Calculator">Car Loan EMI Calculator</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/fixed-deposit/fd-calculator.html" title="FD Calculator" aria-label="FD Calculator">FD Calculator</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/recurring-deposit/rd-interest-calculator.html" title="RD Calculator" aria-label="RD Calculator">RD Calculator</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-white" href="/finance-tools/emi-calculator.html" title="EMI Calculator" aria-label="EMI Calculator">EMI Calculator</a></li></ul></div></div><div data-orientation="horizontal" role="none" class="shrink-0 bg-slate-200 dark:bg-slate-800 h-[1px] w-full my-4"></div><div class="items-center flex justify-center gap-4 p-2.5"><p class="text-sm text-white font-bold ">Learn More:</p><ul class="flex gap-2.5"><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="https://blog.bankbazaar.com/category/credit-cards/" title="Credit Cards" aria-label="Credit Cards">Credit Cards</a></li><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="https://blog.bankbazaar.com/yes-bank-bankbazaar-finbooster-credit-card/" title="Credit Card Offers" aria-label="Credit Card Offers">Credit Card Offers</a></li><li class="text-sm inline-block w-auto pt-1 pb-1 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class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="/ifsc-code.html" title="Bank IFSC Code" aria-label="Bank IFSC Code">Bank IFSC Code</a></li><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="/gold-rate-india.html" title="Gold Rate" aria-label="Gold Rate">Gold Rate</a></li><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="/indian-holiday-calendar.html" title="Indian Holidays" aria-label="Indian Holidays">Indian Holidays</a></li><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="/visa.html" title="Visa" aria-label="Visa">Visa</a></li></ul></div><div data-orientation="horizontal" role="none" class="shrink-0 bg-slate-200 dark:bg-slate-800 h-[1px] w-full my-4"></div><div class="items-start flex justify-center gap-4 p-2.5"><div class="items-center flex flex-col justify-center gap-4 p-2.5"><p class="text-sm text-white font-bold ">Mobile Apps:</p><ul class="flex gap-2.5"><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="https://bnkbzr.page.link/qBro" title="Google play" target="_blank" aria-label="Google play"><img src="https://static.bankbazaar.com/images/download-android-application.svg" alt="Google play" title="Google play" width="121" height="36" loading="lazy" style="max-width:100%;display:inline"/></a></li><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="https://bnkbzr.page.link/qBro" title="Apple Store" target="_blank" aria-label="Apple Store"><img src="https://static.bankbazaar.com/images/india/infographic/apple-store-button.svg" alt="Apple Store" title="Apple Store" width="121" height="36" loading="lazy" style="max-width:100%;display:inline"/></a></li></ul></div><div class="items-center flex flex-col justify-center gap-4 p-2.5"><p class="text-sm text-white font-bold ">Contact Us:</p><ul class="flex gap-2.5"><li class="text-sm inline-block w-auto pt-1 pb-1 m-1.5"><a class="inline-flex hover:underline no-underline text-white" href="mailto:support@bankbazaar.com" title="support[at]bankbazaar[dot]com" aria-label="support[at]bankbazaar[dot]com"><span class="relative flex shrink-0 overflow-hidden rounded-full bg-white w-6 h-6 mr-1 items-center"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-mail h-4/5 text-base fill-gray"><rect width="20" height="16" x="2" y="4" rx="2"></rect><path d="m22 7-8.97 5.7a1.94 1.94 0 0 1-2.06 0L2 7"></path></svg></span>support[at]bankbazaar[dot]com</a></li></ul></div><div class="items-center flex flex-col 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{"basename":"/","future":{"v3_fetcherPersist":true,"v3_relativeSplatPath":true,"v3_throwAbortReason":true,"unstable_singleFetch":false,"unstable_lazyRouteDiscovery":false,"unstable_optimizeDeps":false},"isSpaMode":false,"state":{"loaderData":{"root":{"namespace":"tax/how-calculate-hra-from-basic-salary","gtmId":"GTM-TRB8XL","wenEngageId":"~13410604b","appshell":true},"routes/default/route":{"productType":"ALL","categoryType":"INCOME_TAX","bankId":1001,"pageData":{"id":13225,"breadCrumb":{"currentPageText":"HRA Calculation","otherLinks":[{"link":"/income-tax.html","text":"Income Tax"}]},"showTOC":false,"hideOfferTable":true,"faqs":{"items":[{"question":"What is the formula for calculating HRA?","answer":[{"type":"paragraph","data":{"text":"The employee's actual rent payment is 10% of their base pay, or\u0026nbsp;employer's actual HRA offered, or\u0026nbsp;50% of the basic salary for a residential house in a metropolitan city and 40% of the salary if the employee resides in a non-metropolitan city."}}]},{"question":"Is it necessary to submit my landlord’s PAN card to claim HRA deduction?","answer":[{"type":"paragraph","data":{"text":"If you pay more than Rs 1 lakh in annual rent, the landlord's PAN is necessary to qualify for HRA exemption. In the absence of a PAN in the landlord's name, a signed statement should be submitted. "}}]},{"question":"Can I claim for HRA exemption if I am living with my parents?","answer":[{"type":"paragraph","data":{"text":"Yes, you can claim HRA exemption if you are living with your parents and can provide a rent receipt in their name. However, when it comes time to filing their income tax returns, your parents must include the same rent as part of their income.\u0026nbsp;"}}]},{"question":"Can I pay rent to my spouse and claim for HRA deduction on it?","answer":[{"type":"paragraph","data":{"text":"No, you are not permitted to a deduction in HRA if you pay rent to your spouse.\u0026nbsp;"}}]},{"question":"Can I save Tax if I don’t receive HRA?","answer":[{"type":"paragraph","data":{"text":"Yes, if you continue to live in a rented home, you can save taxes even if your pay stub does not include HRA or if you work for yourself. Section 80GG of the Income Tax Act allows you to deduct the least of the following from your taxes: 25% of your gross annual income; actual rent paid (10% of total income); Rs. 60,000 per year; or Rs. 5,000 per month. "}}]},{"question":"Can I deduct HRA from my taxes even though I own a home?","answer":[{"type":"paragraph","data":{"text":"Yes, in certain cases where you live in a rented house in a different city from the city you own a house in.\u0026nbsp;"}}]},{"question":"I don’t have rent receipts. Can I still claim HRA deductions? ","answer":[{"type":"paragraph","data":{"text":"Yes, provided you have a rent/lease agreement and bank statements supporting your claim.\u0026nbsp;\u0026nbsp;"}}]},{"question":"How can I calculate HRA deductions?","answer":[{"type":"paragraph","data":{"text":"The Income Tax Department’s HRA calculator is a good option to calculate the amount of claimable deduction u/s 10(13A) of the Income Tax Act.\u0026nbsp;"}}]},{"question":"Can I still claim for HRA deduction if my house is currently being built, so I've rented another place in the same city?","answer":[{"type":"paragraph","data":{"text":"Yes, you can claim for HRA deduction if you are paying rent and your own house is still under construction.\u0026nbsp;"}}]},{"answer":[{"data":{"text":"In this case, you can claim the tax benefit on HRA at the time of filing income tax returns. You will have to keep the proof of rent payment handy, as you may be required to submit these documents to the Income Tax department to authenticate your claim."},"type":"paragraph"}],"question":"I have forgotten to submit rent receipts to my employer. How can I claim HRA tax benefit now?"},{"answer":[{"data":{"text":"No, not everyone can claim tax exemption on HRA. Although HRA is part of the salary of most employed individuals, the exemption can only be availed by those who pay rent. HRA exemption is also not applicable for self-employed individuals."},"type":"paragraph"}],"question":"Can anyone claim tax exemption on HRA?"},{"answer":[{"data":{"text":"You can claim tax exemption on HRA if you are paying rent to your parents. However, you should have sufficient documents that serve as proof of this transaction."},"type":"paragraph"}],"question":"Can I claim HRA tax exemption when paying rent to a family member?"},{"answer":[{"type":"paragraph","data":{"text":"If an individual pays rent for an unfurnished/furnished house, he/she can claim tax deduction on the rent paid (under Section 80 (GG) of the Income Tax Act), provided HRA is not part of his/her salary. He/she should furnish Form 10B for this purpose."}}],"question":"HRA is not part of my salary, but I stay in a rented accommodation. Can I get any tax benefits?"},{"answer":[{"type":"paragraph","data":{"text":"No, HRA exemption can be claimed only for the rent paid. You won't be able to claim a tax deduction for the maintenance or electricity charges. These charges are also not considered as the landlord's earnings when calculating his/her \u003ca href=\"/income-tax.html\" target=\"_blank\"\u003eincome tax\u003c/a\u003e."}}],"question":"Can the maintenance charges that I pay for my apartment be included for HRA tax exemption?"}],"title":"FAQs on HRA Calculation"},"hungryForMore":[{"type":"paragraph","data":{"text":"The HRA varies depending on the city. Additionally, it varies based on the city's cost of living. According to section 10, the amount received as a portion of the \u003ca href=\"/tax/house-rent-allowance.html\" target=\"_blank\"\u003eHouse Rent Allowance\u003c/a\u003e (HRA) may be subtracted from the taxable salary (13A)."}},{"type":"references","data":{"items":[]}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225"}},{"type":"header","data":{"text":"What is HRA Tax Exemption?","level":2}},{"type":"paragraph","data":{"text":"According to the Income Tax Act of 1961, a portion of an employee's HRA is exempt from taxation, and the remainder is taxable. "}},{"type":"paragraph","data":{"text":"To determine the amount of HRA that may be deducted from the total salary, a set of criteria must be met. Determining the deductions is part of the HRA income tax calculation."}},{"type":"cta","data":{"linkText":"HRA Exemption Calculator","link":"/tax/hra-calculator.html"}},{"type":"paragraph","data":{"text":"You cannot use HRA if you reside in a home that you own because it is intended to cover the cost of your rented housing."}},{"type":"header","data":{"text":"How is Exemption on HRA is Calculated?","level":2}},{"type":"paragraph","data":{"text":"HRA is mainly determined by your salary. As per the \u003ca href=\"/tax/income-tax-rules.html\" target=\"_blank\"\u003eincome tax rules\u003c/a\u003e, the tax-exempt is part of the HRA (House Rent Allowance).\u0026nbsp;The factors listed below determine how the HRA is calculated: "}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eRent paid\u003c/strong\u003e: The actual rent you paid for living in the residence. You can’t claim HRA if you stay in a hotel. You will need rent receipts, bank statements and lease agreements to prove that you are paying rent.","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eSalary\u003c/strong\u003e: The different salary components such as basic salary, your \u003ca href=\"/tax/dearness-allowance.html\" target=\"_blank\"\u003eDearness allowance\u003c/a\u003e (DA), and special allowances play a role in determining your HRA.","items":[]},{"content":"\u003cstrong\u003eResidence\u003c/strong\u003e: The city you live in can affect your HRA. If you live in a metropolitan city then the HRA should not exceed 50% of your basic salary and 40% of your basic salary if you reside in a non-metropolitan city.","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eHRA from the Employer\u003c/strong\u003e: The actual HRA you receive from your employer is an important factor in calculating HRA deductions.","items":[]}]}},{"type":"cta","data":{"linkText":"Check Your Credit Score for FREE","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225"}},{"type":"header","data":{"text":"HRA Calculation with Example","level":3}},{"type":"paragraph","data":{"text":"Let us consider the scenario of a salaried individual, Mr. Ganesh, who resides in Delhi. He lives in rented accommodation and pays a monthly rent of Rs.10,000. This amounts to Rs.1.2 lakh annually. The table below shows his monthly earnings:"}},{"type":"table","data":{"rows":[{"cols":[{"content":[{"type":"paragraph","data":{"text":"Components"}}],"colspan":1,"rowspan":1,"highlight":true},{"content":[{"type":"paragraph","data":{"text":"Amount"}}],"colspan":1,"rowspan":1,"highlight":true}]},{"cols":[{"content":[{"data":{"text":"\u003ca href=\"/tax/basic-salary.html\" target=\"_blank\"\u003eBasic Salary\u003c/a\u003e"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.30,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"HRA"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.13,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"\u003ca href=\"/tax/conveyance-allowance.html\" target=\"_blank\"\u003eConveyance Allowance\u003c/a\u003e"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.2,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"\u003ca href=\"/tax/special-allowance.html\" target=\"_blank\"\u003eSpecial Allowance\u003c/a\u003e"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.3,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"\u003ca href=\"/tax/leave-travel-allowance.html\" target=\"_blank\"\u003eLeave Travel Allowance\u003c/a\u003e (LTA)"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.5,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"Total Earnings"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Rs.53,000"},"type":"paragraph"}],"colspan":1,"rowspan":1}]}]}},{"type":"paragraph","data":{"text":"In Mr. Ganesh's example, the tax-exempt part of his HRA would be the lowest of the following, considering his earnings on an annual basis:"}},{"type":"list","data":{"style":"unordered","items":[{"content":"Actual HRA component of salary: (Rs.13,000 * 12) = Rs.1.56 lakh\u0026nbsp;\u0026nbsp;","items":[]},{"content":"50% of his basic salary, as he stays in Delhi: (50% * Rs.30,000 * 12) = Rs.1.80 lakh\u0026nbsp;\u0026nbsp;","items":[]},{"content":"Actual rent paid minus 10% of basic salary: (Rs.10,000 * 12) - (10% * Rs.30,000 * 12) = Rs.1.2 lakh – Rs.36,000 = Rs.84,000\u0026nbsp;","items":[]}]}},{"type":"paragraph","data":{"text":"Since Rs.84,000 is the lowest value above, this is the amount of tax-exemption Mr. Ganesh can receive on HRA. The rest of the HRA amount received will be taxed as per his \u003ca href=\"/tax/income-tax-slabs.html\" target=\"_blank\"\u003eincome tax slab\u003c/a\u003e."}},{"type":"embed","data":{"mobileWidth":340,"mobileHeight":192,"desktopWidth":720,"desktopHeight":405,"service":"youtube","embed":"https://www.youtube.com/embed/CUHATMJX7Io","metaProps":{"name":"How To Calculate HRA Exemption For Income Tax | Step-by-Step Explanation With Example","description":"This video can quickly help you answer the question, \"how do I calculate my HRA exemption?\"\n\nIf you are staying in a rented accommodation, then you are entitled to claim this under Section 10 (13A) of the Income-tax Act, 1961.\n\nThese are the three formulas used to determine your HRA exemption:\n\nI. Actual House Rent Allowance Received\nII. Rent – 10% Basic Salary\nIII. 50% Of basic salary if you live in a metro. If you live in a non-metro, then you must consider 40%.\n\nRemember, the lowest amount from among these is the tax exempt part of your House Rent Allowance.\n\nExample:\n\nLet’s assume you live in Mumbai (metro)\nRent: Rs. 10,000 per month\nBasic salary: Rs. 30,000 per month \nActual HRA: Rs. 13,000 per month.\n\nThis means your annual rent is 10,000 x 12 = Rs. 1,20,000\nYour annual basic salary is 30,000 x 12 = Rs. 3,60,000\nActual HRA for the year is 13,000 x 12 = Rs. 1,56,000\n\nNow let’s put these numbers into the three formulas.\n\nActual HRA received = Rs. 1,56,000\nRent - 10% basic salary is 120,000 - 36,000 = Rs. 84,000\n50% Basic Salary is 0.5 x 3,60,00 = Rs. 180,000\n\nAs you can see, the lowest among these is Rs. 84,000, and that is the amount that you can claim as HRA exemption.","thumbnailUrl":"https://i.ytimg.com/vi/CUHATMJX7Io/sddefault.jpg","uploadDate":"2019-05-09T09:15:29Z","duration":"PT1M24S","keywords":["hra","hra calculation","how to calculate hra","hra exemption","house rent allowance","house rent allowance income tax","hra income tax"],"contentUrl":"https://youtube.com/watch/?v=CUHATMJX7Io","embedUrl":"https://www.youtube.com/embed/CUHATMJX7Io","commentCount":"0","interactionCount":"19020"}}},{"type":"header","data":{"text":"HRA in New Tax Regime","level":2}},{"type":"paragraph","data":{"text":"The\u003ca href=\"/tax/income-tax-slabs.html\" target=\"_blank\"\u003e new tax regime\u003c/a\u003e has witnessed a lot of changes when compared to the old regime. However, one of the biggest changes that are to be pointed out is the fact that the new regime will not have some of the exemptions or deductions from the last tax regime. These include the House Rent Allowance or HRA as well. Thus, if you opt for the new tax regime and file your \u003ca href=\"/tax.html\" target=\"_blank\"\u003etaxes \u003c/a\u003eaccordingly, you will not be able to enjoy the deduction for HRA."}},{"type":"references","data":{"items":[{"items":[{"text":"Income Tax","link":"/income-tax.html"},{"text":"Income Tax Act","link":"/tax/income-tax-act.html"},{"text":"Income Tax Slabs","link":"/tax/income-tax-slabs.html"},{"text":"Efiling Income Tax","link":"/tax/efiling-income-tax.html"},{"text":"Income Tax Return","link":"/tax/income-tax-return.html"},{"text":"TDS Online Payment","link":"/tax/tds-online-payment.html"},{"text":"Income Tax Refund","link":"/tax/income-tax-refund.html"},{"text":"Steps to efiling ITR online","link":"/tax/step-by-step-guide-efile-income-tax-return-online.html"},{"text":"Gratuity","link":"/tax/gratuity.html"},{"text":"TDS Online Payment Process","link":"/tax/tds-online-payment.html"},{"text":"GST","link":"/tax/gst.html"},{"text":"GST Returns","link":"/tax/gst-returns.html"},{"text":"7th Pay Commission","link":"/tax/7th-pay-commission.html"},{"text":"TDS","link":"/tax/all-about-tds.html"},{"text":"Form 16","link":"/tax/form-16.html"}],"title":"Related Articles on Tax"}]}},{"type":"header","data":{"text":"Eligibility to Claim Tax Deduction on HRA","level":2}},{"type":"paragraph","data":{"text":"If the following requirements are satisfied, a portion of HRA may be claimed as a tax deduction under Section 10(13A) of the Income Tax Act:\u0026nbsp;"}},{"type":"list","data":{"style":"unordered","items":[{"content":"Your name should be on the rent receipt (indicating that you are paying the rent for the house).\u0026nbsp;\u0026nbsp;","items":[]},{"content":"HRA should be a component of your pay slip.\u0026nbsp;","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"You should be a salaried/paid employee.\u0026nbsp;","items":[]},{"content":"You should reside in a rented home.\u0026nbsp;","items":[]}]}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13225"}},{"type":"header","data":{"text":"Required Documents to Claim HRA Tax Exemption","level":2}},{"type":"paragraph","data":{"text":"You will have to submit the following documents to claim HRA tax exemption:"}},{"type":"list","data":{"style":"unordered","items":[{"content":"Rental receipts that reflect the rent required to calculate HRA deductions or the rental agreement that specifies the corresponding rent amount.","items":[]},{"content":"A copy of the landlord's PAN card or a declaration form with their signature is also needed if the rent exceeds Rs.1 lakh per year. The same documentation will be required for parents' or family members' rent payments in order to \u003ca href=\"/tax/hra-calculator.html\" target=\"_blank\"\u003ecalculate HRA tax\u003c/a\u003e.","items":[]}]}},{"type":"header","data":{"text":"Can I claim tax exemption on HRA and deduction on home loan interests at the same time?","level":2}},{"type":"paragraph","data":{"text":"Yes, this is possible. You may be living in a rented house in one city while you own a house (for which you are repaying a \u003ca href=\"/home-loan.html\" target=\"_blank\"\u003ehome loan\u003c/a\u003e) in another city."}},{"type":"list","data":{"style":"unordered","items":[{"content":"You can claim tax exemption on HRA for the rent paid.","items":[]},{"content":"You can also claim tax deduction on the home loan interest paid.","items":[]},{"content":"Tax deduction can be claimed on home loan principal repayment as well.","items":[]}]}},{"type":"cta","data":{"linkText":"Check Your Credit Score for FREE","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13225\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13225"}}],"hideUserReviews":true,"hideEligForm":true,"metaDescription":"Know Everything about How to Calculate your HRA Tax Exemption on Salary. Also, know Eligibility to Claim Tax Deduction on House Rent Allowance.","h1Title":"How to Calculate HRA from Basic Salary","metaKeyword":"hra calculation, hra calculation formula","metaTitle":"How is Exemption on HRA Calculated? - Complete Info","showDateOn":{"hungryForMore":false,"metaDescription":false},"topContent":[{"type":"paragraph","data":{"text":"House Rent Allowance (HRA) is a significant taxable element of a pay slip. It is the amount that a company provides to their employees to help with living expenses when they are renting a property."}}],"interLinks":{"asLeftNav":true,"items":[{"title":"Articles Related to Tax","items":[{"text":"Income Tax","link":"/income-tax.html"},{"text":"Income Tax Slabs","link":"/tax/income-tax-slabs.html"},{"text":"Income Tax Calculator","link":"/tax/income-tax-calculator.html"},{"text":"Dearness Allowance","link":"/tax/dearness-allowance.html"},{"text":"Gratuity","link":"/tax/gratuity.html"},{"text":"GST","link":"/tax/gst.html"},{"text":"GST Rates","link":"/tax/gst-rates.html"},{"text":"7th Pay Matrix Table","link":"/tax/7th-pay-commission-pay-matrix-table.html"},{"text":"Form 16","link":"/tax/form-16.html"},{"text":"Form 26AS","link":"/tax/form-26as.html"},{"text":"Income Tax Refund Status","link":"/tax/income-tax-refund-status.html"},{"text":"7th Pay Commission","link":"/tax/7th-pay-commission.html"},{"text":"Tax","link":"/tax.html"},{"text":"Income Tax Return","link":"/tax/income-tax-return.html"},{"text":"efiling Income Tax","link":"/tax/efiling-income-tax.html"},{"text":"Which ITR to File","link":"/tax/which-itr-to-file.html"},{"text":"How to file ITR","link":"/tax/step-by-step-guide-efile-income-tax-return-online.html"},{"text":"HRA Calculation","link":"/tax/how-calculate-hra-from-basic-salary.html"},{"text":"Advance Tax","link":"/tax/advance-tax.html"},{"text":"Capital Gains Tax","link":"/tax/capital-gains-tax.html"},{"text":"Direct Tax","link":"/tax/direct-tax.html"},{"text":"Indirect Tax","link":"/tax/indirect-tax.html"},{"text":"Income Tax Refund","link":"/tax/income-tax-refund.html"},{"text":"GST Registration","link":"/tax/gst-registration.html"},{"text":"GST Types","link":"/tax/types-of-gst.html"},{"text":"4th, 5th, 6th, and 7th Pay Scale Chart","link":"/tax/4th-5th-6th-and-7th-cpc-pension-calculator.html"},{"text":"7th Pay Commission Leave Rules","link":"/tax/7th-cpc-leave-rules.html"},{"text":"Equivalent Ranks of Commissioned Officers in Army, Navy and Air Force","link":"/tax/equivalent-ranks-indian-armed-forces-army-air-force-navy.html"},{"text":"TDS Rates","link":"/tax/tds-rates-for-ay-2015-2016.html"},{"text":"TDS on Salary","link":"/tax/how-calculate-tds-from-salary.html"},{"text":"TDS Return Due Date","link":"/tax/due-dates-for-efiling-tds-return.html"},{"text":"TDS Refund","link":"/tax/how-claim-tds-refund.html"},{"text":"Form 15G and 15H","link":"/tax/forms-15g-and-15h-to-save-tds.html"},{"text":"Section 143-1","link":"/tax/reason-for-getting-an-intimation-under-sec-143-1.html"},{"text":"Section 194J","link":"/tax/section-194j-tds-on-professional-technical-fee.html"},{"text":"Section 10","link":"/tax/special-allowance-under-section-10-for-salaried-employees.html"},{"text":"Section 80C","link":"/tax/deductions-under-80c.html"},{"text":"Section 80D","link":"/tax/section-80d.html"},{"text":"Section 80DDB","link":"/tax/section-80ddb.html"},{"text":"Section 80C to 80U","link":"/tax/income-tax-deductions-under-section-80c-to-80u.html"},{"text":"Property Tax","link":"/tax/property-tax.html"},{"text":"BBMP Property Tax","link":"/tax/bbmp-property-tax.html"},{"text":"MCD Property Tax","link":"/tax/mcd-property-tax.html"},{"text":"Road Tax","link":"/tax/road-tax.html"},{"text":"VAT","link":"/tax/value-added-tax.html"},{"text":"Union Budget","link":"/tax/union-budget.html"},{"text":"Entry Tax","link":"/tax/entry-tax.html"},{"text":"Professional Tax","link":"/tax/professional-tax.html"},{"text":"Service Tax","link":"/tax/service-tax.html"},{"text":"Sales Tax","link":"/sales-tax.html"},{"text":"Excise Duty","link":"/tax/excise-duty.html"},{"text":"Cost Inflation Index","link":"/tax/cost-inflation-index.html"}]}]},"updatedOn":"24 Nov 2024","ogImage":{"src":"https://static.bankbazaar.com/images/social-share/bb-social-share-v1.jpg"}},"contextData":{"namespace":"tax/how-calculate-hra-from-basic-salary","productType":"ALL","categoryType":"INCOME_TAX","deviceType":"DESKTOP"}}},"actionData":null,"errors":null}};</script><script type="module" async="">import "/lp-assets/manifest-f1a2314f.js"; import * as route0 from "/lp-assets/root-DJnZuezO.js"; import * as route1 from "/lp-assets/route-BAfJONhu.js"; window.__remixRouteModules = {"root":route0,"routes/default/route":route1}; import("/lp-assets/entry.client-DcW77Zik.js");</script><script id="_webengage_script_tag" type="text/javascript"> function initializeWebEngage() { ! 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