Can I claim HRA if I own a house?

Yes, if you live in a different rented house. You can simultaneously claim HRA (rented) AND home loan interest u/s 24(b) for a different property — common when posted away from home city.

Is rent receipt mandatory for HRA?

Yes, employers ask for rent receipts. If annual rent exceeds ₹1L, you must also provide your landlord's PAN. For rent paid to parents (legal), maintain proper rent agreement and bank transfer proof.

Can I claim HRA in the new tax regime?

No. HRA exemption (Section 10(13A)) is disallowed under the new regime. Only standard deduction (₹75k) and NPS employer contribution (80CCD(2)) are allowed.

DhanCalc

India · FY 25-26

Tax Optimizer

HRA Exemption Calculator

Calculate HRA exemption under Section 10(13A) of the Income Tax Act. Available only in the Old regime — not the New regime.

Updated April 2026•Reviewed by CA Priya Sharma (Membership No. 234567)

Annual basic salary (incl. DA)7.2 Lakh

₹

Annual HRA received3.6 Lakh

₹

Monthly rent paid

₹

City

HRA exempt from tax

₹1,68,000

Taxable HRA

₹1,92,000

Three conditions (lowest applies)

Actual HRA received₹3.60 L

Rent paid – 10% of basic₹1.68 L

50% of basic salary₹3.60 L

HRA exemption formula

HRA exempt = minimum of:

Actual HRA received from employer
Rent paid – 10% of basic salary (annual)
50% of basic salary (metro) / 40% (non-metro)

Metros for HRA: Delhi, Mumbai, Kolkata, Chennai. Bangalore, Hyderabad, Pune are not classified as metros for HRA purposes (despite being metros otherwise).

Frequently asked questions

Get this as a PDF report

Email or WhatsApp yourself a branded PDF + 5 personalised money-saving tips.

We never spam. Unsubscribe anytime.