HRA Exemption Calculator

HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) 50% of basic salary for metro cities or 40% for non-metro cities, (3) Actual rent paid minus 10% of basic salary. The lowest of these three amounts is exempt from tax.

As per Budget 2026, eight cities qualify as metro cities for 50% HRA exemption: Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune, Bengaluru, and Ahmedabad. All other cities are non-metro, where the HRA exemption is 40% of basic salary.

Yes, you can pay rent to your parents and claim HRA exemption. However, the rent agreement must be genuine, and your parents must declare the rental income in their ITR. This is a legitimate tax-saving strategy, especially when parents are in a lower tax bracket.

Yes. You can claim both HRA (if you live in a rented house in a different city where you work) and home loan deduction (for a self-owned house in another city or that is under construction). Both can be claimed simultaneously if conditions are met.

If HRA is not part of your salary structure, you cannot claim Section 10(13A) exemption. However, you can claim deduction under Section 80GG for rent paid, subject to certain conditions: you must not own a house in the city you work, your spouse/minor child should not own a house there, and maximum deduction is ₹5,000/month or 25% of total income, whichever is less.