HRA Exemption Calculator

The HRA exemption is the minimum of: (a) actual HRA received; (b) 50% of basic+DA for metros or 40% for non-metros; (c) rent paid minus 10% of basic salary. The calculation must be done annually using Form 12BB and submitted to your employer in advance.

Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% basic+DA test. All other cities fall under the 40% test, regardless of state-level classification. Use the metro toggle in the calculator if your rented home is in any of these four cities.

Yes — salaried employees living in a house owned by parents can claim HRA exemption (subject to the three statutory limits) and parents declare the rental income. The parents can also claim a 30% standard deduction under Section 24(a) if the property was let out, provided the rent does not exceed fair-market value.

If aggregate rent paid to a landlord in a financial year exceeds ₹1,00,000, Section 203AA read with Rule 114C requires the landlord PAN to be quoted in your Form 12BB / 24Q filing. Failure to do so results in 30% of the rent being disallowed as HRA — even if rent was actually paid.

You can claim HRA for the rented house while also claiming Section 80C repayment of principal and Section 24(b) interest on a home loan for a different self-occupied property — but only if both houses exist simultaneously. Self-occupied property owners without a rented home cannot double-claim.

No. HRA exemption applies only to the rent-paid component of your salary structure. Leave encashment is exempt under Section 10(10AA) for government employees and is fully taxable for non-government employees, governed by separate rules.