HRA is an allowance your employer pays as part of your salary to help meet the cost of rented accommodation. The full HRA is taxable by default, but a portion can be exempt from tax under Section 10(13A) if you actually pay rent.

Your exempt HRA is the lowest of three amounts: the actual HRA received, 50% of Basic + DA for metro cities (40% for non-metro), and the rent you paid minus 10% of Basic + DA. The lowest of these three is the amount shielded from tax.

Exempt HRA = minimum of (1) actual HRA received, (2) 50% or 40% of Basic + DA depending on your city, and (3) rent paid − 10% of Basic + DA. The remaining HRA after this exemption is added to your taxable income.

From FY 2026-27, eight cities qualify for the 50% rate: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other city is treated as non-metro at 40%.

Yes. Under the Income Tax Rules 2026, the metro list expanded from four to eight cities. Bengaluru, Hyderabad, Pune and Ahmedabad moved from 40% to 50% from FY 2026-27 onwards. For FY 2025-26 returns, the older four-city list still applies.

Yes, from FY 2026-27. These four cities were upgraded to metro status and now qualify for the 50% HRA rate, up from 40% earlier. This can meaningfully increase the exempt portion of HRA for salaried professionals living there.

No. HRA exemption is available only under the old tax regime. If you opt for the new regime, your entire HRA is taxable regardless of the rent you pay or the city you live in.

For HRA, salary means Basic pay plus Dearness Allowance (DA), and any commission received as a fixed percentage of turnover. Other allowances are generally not included. Use this Basic + DA figure in the calculator.

It depends on the city where your rented accommodation is located, not where your employer's office is registered. If you rent in a metro city, the 50% rate applies even if your company is headquartered elsewhere.

No. Even though they are part of the National Capital Region, Gurgaon and Noida are not on the eight-city metro list. Only Delhi itself qualifies for 50%, so Gurgaon and Noida are computed at the 40% non-metro rate.

Yes, if the arrangement is genuine. You need a valid rent agreement, rent should be paid through bank transfer, and your parents must declare the rental income in their own return. You cannot pay rent for a property you own yourself.

If your annual rent exceeds ₹1 lakh, you must report your landlord's PAN. For rent paid to a family member, the new rules require declaring the landlord's name, PAN and relationship, so keep this documentation ready.

From April 2026, Form 124 replaces the earlier Form 12BB for declaring HRA, home loan interest and similar claims to your employer. Rent paid to a parent, spouse or sibling above ₹1 lakh a year must disclose the relationship and PAN in this form.

Yes, in genuine cases you can claim HRA and home loan deductions together, for example if you own a house in one city but live on rent in another for work. The arrangement must be real and well documented, so consult a tax advisor for your specific situation.

If HRA is not part of your salary, or you are self-employed, you cannot claim under Section 10(13A). Instead you may claim a rent deduction under Section 80GG, subject to its own limits and conditions.

Usually not. Only the lowest of the three calculated limits is exempt. The remaining HRA is added to your taxable salary. The calculator shows both the exempt amount and the taxable balance.

Keep rent receipts, a rent agreement, and proof of rent paid such as bank transfer records. If annual rent exceeds ₹1 lakh, your landlord's PAN is also required. Employers may ask for these before processing the exemption.

Self-employed individuals cannot claim HRA under Section 10(13A) because they do not receive HRA from an employer. They may instead claim a rent deduction under Section 80GG if they meet its conditions.

You cannot claim HRA for rent paid on a property you own, in full or jointly. HRA is meant for genuine rent paid for accommodation you do not own. Claims on self-owned property can be disallowed during scrutiny.

It gives a reliable estimate assuming your salary, rent and city stay the same through the year. Actual exemption can differ if any of these change mid-year, or based on documentation and prevailing rules. Treat the result as guidance and confirm with a tax professional before filing.