House Rent Allowance (HRA) is a common salary component, and part of it is exempt from tax if you actually pay rent. The exemption is calculated under Section 10(13A) and is available only in the old regime.
This guide explains how HRA exemption is calculated and what proof you need.
What is HRA Exemption?
The HRA exemption is the least of three amounts: actual HRA received; 50% of salary (metro) or 40% (non-metro); or rent paid minus 10% of salary. Only that least amount is exempt.
You need rent receipts, and the landlord's PAN if annual rent exceeds ₹1,00,000.
| Section | 10(13A) |
|---|---|
| Metro (50%) | Delhi, Mumbai, Kolkata, Chennai |
| Regime | Old regime only |
| Landlord PAN | Needed if rent > ₹1 lakh/year |
Frequently asked questions
Can I claim HRA in the new regime?
No. The HRA exemption is available only under the old tax regime.
Can I claim HRA and a home loan together?
Yes, in genuine cases — for example, if you rent in your work city while owning a home elsewhere (or it is let out).