Can I claim HRA under the new tax regime?

No. From FY 2023-24, the new tax regime is default and does NOT allow HRA exemption, 80C, or most other deductions. You must specifically opt for the old regime (via Form 10-IEA for business income; salaried employees can choose annually via employer) to claim HRA.

What if my landlord refuses to give a PAN?

If your annual rent exceeds ₹1 lakh (₹8,333/month), you MUST provide landlord PAN to your employer. If landlord refuses, ask them for a signed declaration citing their non-availability of PAN — but the exemption may be denied on scrutiny. Aadhaar can substitute if landlord has no PAN.

Can I pay rent to my parents and claim HRA?

Yes, legally allowed if rent is actually paid (bank transfer preferred, cash acceptable with receipts) AND parents show the rent as income in their return. Do NOT rent from spouse — CBDT and courts have held such claims as tax evasion.

Can I claim HRA under the new tax regime?

No. From FY 2023-24, the new tax regime is default and does NOT allow HRA exemption, 80C, or most other deductions. You must specifically opt for the old regime (via Form 10-IEA for business income; salaried employees can choose annually via employer) to claim HRA.

What if my landlord refuses to give a PAN?

If your annual rent exceeds ₹1 lakh (₹8,333/month), you MUST provide landlord PAN to your employer. If landlord refuses, ask them for a signed declaration citing their non-availability of PAN — but the exemption may be denied on scrutiny. Aadhaar can substitute if landlord has no PAN.

Can I pay rent to my parents and claim HRA?

Yes, legally allowed if rent is actually paid (bank transfer preferred, cash acceptable with receipts) AND parents show the rent as income in their return. Do NOT rent from spouse — CBDT and courts have held such claims as tax evasion.

HRA Exemption Calculator

House Rent Allowance tax exemption per Section 10(13A) — least of (actual HRA received, 50%/40% of Basic+DA, rent paid − 10% of Basic+DA).

Result

Annual HRA exemption

₹240,000

Actual HRA received (annual)₹240,000
50% of Basic+DA (annual)₹240,000
Rent paid − 10% of Basic+DA (annual)₹252,000
Exempted from taxLeast of the 3 above per Section 10(13A)₹240,000
Taxable HRA₹0

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How to use this calculator

Enter your monthly Basic + DA (from payslip).
Enter monthly HRA received.
Enter monthly rent paid.
Choose metro vs non-metro city.
Read the annual exemption (LEAST of the three calculated values).

About this tool

HRA (House Rent Allowance) is a common salary component and part of it is tax-exempt under Section 10(13A) of the Income Tax Act — provided you actually pay rent for accommodation. The exempt amount is the LEAST of three values: (a) actual HRA received, (b) 50% (metro) or 40% (non-metro) of Basic+DA, and (c) rent paid minus 10% of Basic+DA. Only the old tax regime allows this exemption — under the new regime (default from FY 2023-24), HRA is fully taxable. Rent receipts + landlord PAN (if annual rent >₹1L) are required as proof.

Frequently asked

Only 4 cities: Delhi, Mumbai, Kolkata, Chennai — they qualify for 50%. All other cities including Bangalore, Hyderabad, Pune, Ahmedabad get 40%. This is fixed by the Income Tax Act.

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