What cities are considered metro for HRA?

Metro cities for HRA calculation are Delhi, Mumbai, Kolkata and Chennai. For these cities, 50% of basic salary is used. For all other cities (Bangalore, Hyderabad, Pune, etc.), 40% of basic salary is used.

Can I claim HRA without receipts?

Rent receipts are required for HRA exemption claims above ₹1 lakh per year. Below ₹1 lakh, receipts are not mandatory but recommended. You also need the landlord's PAN if annual rent exceeds ₹1 lakh.

Can I claim both HRA and home loan deduction?

Yes, if you have a home loan on a property in a different city from where you work and pay rent. You can claim both HRA exemption on rent paid and home loan deduction (interest under Section 24 and principal under 80C).

🏠 Tax Saving Tool

HRA Calculator

Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A). Find exactly how much HRA is tax-free and how much income tax you save.

🏙️ City type

💼 Monthly salary details

Basic salary (per month)

₹

Basic + DA (if DA is part of salary)

HRA received (per month)

₹

As shown on your salary slip

Rent paid (per month)

₹

Actual rent you pay to landlord

Income tax slab

HRA Exempt (Tax-Free) per month --

Section 10(13A) — Minimum of 3 conditions (highlighted = your exempt amount)

①

Actual HRA receivedAs per your salary slip

②

Rent paid − 10% of BasicRent paid minus 10% of basic salary

③

50% of Basic SalaryMetro city limit

--Exempt per month

--Taxable per month

--Exempt per year

--Taxable per year

💰 Income tax saved on HRA exemption (annual)

Based on your tax slab

Annual HRA summary

Item	Monthly	Annual

⚠️ This calculator is for informational purposes. HRA exemption rules have additional conditions — you cannot claim HRA if living in own house, and you need valid rent receipts. Consult a CA or tax advisor for your specific situation.

How is HRA exemption calculated?

HRA exemption under Section 10(13A) is the minimum of three conditions. The Government allows whichever is the lowest to be claimed as tax-free, ensuring neither employer nor employee can over-claim.

🏙️ Metro vs Non-Metro

Only Delhi, Mumbai, Kolkata and Chennai are "Metro" for HRA purposes — getting 50% of basic. Bangalore, Hyderabad, Pune, Ahmedabad all get 40%, even though they are large cities.

📄 Documents needed

Rent receipts monthly or quarterly. Landlord's PAN is mandatory if annual rent exceeds ₹1 lakh. Rental agreement is strongly recommended.

🏠 Own house situation

If you own a house in the same city where you work, you cannot claim HRA exemption even if you pay rent to live elsewhere. HRA becomes fully taxable.

💡 Maximise exemption

To maximise HRA exemption, negotiate higher HRA in your CTC structure. HRA of ~40-50% of basic is optimal. Pay rent by bank transfer for clean documentation.

Frequently asked questions

How is HRA exemption calculated under Section 10(13A)?

HRA exemption = Minimum of: (1) Actual HRA received from employer, (2) Rent paid − 10% of Basic Salary, (3) 50% of Basic Salary for Metro cities / 40% for Non-Metro cities. The lowest of the three is your tax-free HRA.

Which cities are metro for HRA purposes?

Only four cities are "Metro" for HRA: Delhi (including NCR), Mumbai (including Thane and Navi Mumbai), Kolkata, and Chennai. All other cities — including Bangalore, Hyderabad, Pune, Ahmedabad, Surat — are Non-Metro and get 40% of basic.

Can I pay rent to my parents and claim HRA?

Yes, you can pay rent to parents and claim HRA, provided: (1) the house is legally owned by your parents, (2) actual money is transferred by bank, (3) rent agreement exists, and (4) your parents declare rental income in their ITR. Paying rent to spouse is not accepted.

What if my employer does not give HRA separately?

If HRA is not part of your salary structure but you pay rent, you can still claim deduction under Section 80GG — up to ₹5,000/month or 25% of total income, whichever is lower. This is available to self-employed individuals and those without HRA component.

Is HRA part of new tax regime?

No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. If you opt for the New Tax Regime, you cannot claim HRA exemption. Compare both regimes using a tax calculator to decide which saves more tax for you.