HRA Exemption Rule (Section 10(13A))
HRA exemption = minimum of three conditions:
- Actual HRA received from employer
- 50% of basic salary (metro) or 40% (non-metro)
- Rent paid – 10% of basic salary
The taxable HRA = HRA received – HRA exempt. Only the exempt portion reduces your taxable income.
Do I need rent receipts?
Yes. If annual rent exceeds ₹1 lakh, you must provide landlord's PAN. Rent receipts are required for claiming HRA from employer. You can also self-declare if the employer does not collect receipts.
⚠️ Disclaimer: This is an estimate based on Section 10(13A). Consult a Chartered Accountant for your specific tax situation. Source: Income Tax Act, 1961 — CBDT.
Last Updated: June 2025 · Reviewed by Wolf Office Tools Editorial Team