income-tax

HRA Exemption: Complete Guide

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

GetYourCA Team
1 February 2025·Updated 9 April 20261 min read12.5K views

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.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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