Understanding HRA Exemption Rules under Section 10(13A)
Salaried individuals who live in rented accommodation can claim tax exemption on their House Rent Allowance (HRA) under Section 10(13A) of the Indian Income Tax Act, 1961 (available under the Old Tax Regime).
The Three Legal Clauses for HRA Exemption
The minimum of the following three conditions is exempt from income tax:
- Actual HRA Received from your employer.
- Actual Rent Paid minus 10% of Salary (Basic Salary + DA).
- 50% of Salary for those residing in Metro cities, or 40% of Salary for Non-Metro cities.
Metro Cities Classification
- Till FY 2025–26: Mumbai, Delhi, Kolkata, Chennai.
- FY 2026–27 Onwards: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Pune, Hyderabad, and Ahmedabad.
Common Scenarios & Tax Tips
- Paying Rent to Parents: You can claim HRA exemption by paying rent to your parents, provided they own the property and declare the rent as "Income from House Property" in their ITR.
- Missing HR Deadlines: If you missed submitting rent receipts to your employer, you can claim HRA exemption directly while e-filing your ITR.
- Home Loan + HRA: You can claim both HRA tax exemption and Section 24(b) home loan interest deductions if you pay rent while owning a property in a different city or renting due to employment requirements.
Targeted Search Terms & Keywords
hra calculator online
house rent allowance tax exemption
section 10 13a calculation
hra exemption for parents rent
mullayil hra calculator