income-tax

HRA Exemption: Complete Guide

House Rent Allowance exemption calculation, eligibility, and documents required for claiming HRA benefit.

Alok K Acharya & Associates
1 February 2025·Updated 31 August 20261 min read
HRAHouse RentExemptionSalary
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HRA Exemption: Complete Guide#

What is HRA?#

House Rent Allowance is component of salary provided for rental accommodation.

Exemption Calculation#

Least of:

  1. Actual HRA received
  2. 50% of salary (metro) / 40% (non-metro)
  3. Rent paid - 10% of salary

Eligibility#

  • Living in rented accommodation
  • Rent paid exceeds 10% of salary

Documents Required#

  • Rent agreement
  • Rent receipts
  • Landlord's PAN (if rent > ₹1 lakh)

Conclusion#

HRA provides significant tax saving for renters.

Put this into numbers

HRA Exemption Calculator

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Alok K Acharya & Associates

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