Salary Income  ·  House Rent Allowance

HRA Exemption Calculator

Calculate your House Rent Allowance (HRA) tax exemption as per Rule 279 of the Income Tax Rules 2026. Supports multiple employers and job changes during the year. Download detailed statement as Excel.

⚖ Income Tax Act 2025 & IT Rules 2026 · Effective 01.04.2026
1
Employee Details
Basic information for this HRA statement
Name that will appear on Excel output
Optional — for reference on output
Select the tax year
2
Employer-wise HRA & Salary Details
Add each employer separately if you changed jobs during the year. Enter annual figures.
🏢 Employer Details
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Salary (for HRA): As per Rule 279(2)(b) of IT Rules 2026, "Salary" = Basic Pay + Dearness Allowance (only if DA is part of retirement/superannuation benefits). It excludes HRA, bonus, commission, and all other allowances.
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Rule 279 — IT Rules 2026 (w.e.f. 01.04.2026): HRA Exempt = Least of   (a) Actual HRA received  |  (b) Rent paid − 10% of salary  |  (c) 50% salary (metro) / 40% salary (non-metro)
3
HRA Exemption Statement
Summary of HRA exemption
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HRA Exemption Calculated

Computed as per Rule 279 of IT Rules 2026.

✶ Annual Summary
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Total HRA Received
₹0
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Total Rent Paid
₹0
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Total Salary (HRA basis)
₹0
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HRA Exempt (Least of 3)
₹0
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Taxable HRA
₹0
✶ Employer-wise Breakdown
# Employer City Type Ann. Salary (a) HRA Recd (b) Rent−10% (c) City % Exempt Taxable
Rule 279 (IT Rules 2026): HRA exemption = least of — (a) Actual HRA received, (b) Rent paid minus 10% of salary, (c) 50% of salary for Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad & Bengaluru; 40% for all other cities. Salary = Basic + DA (if DA is part of retirement terms). Effective from 01 April 2026.
Disclaimer: This calculator is for informational purposes only. Results are estimates based on values entered. This does not constitute tax advice. Consult a Chartered Accountant for a certified computation.
Tax Knowledge
Understanding HRA Exemption
⚖ New Law · Effective 01.04.2026
Income Tax Act 2025 — Rule 279 of IT Rules 2026
Rule 279 — IT Rules 2026 | Schedule III [Table: Sl.No. 11]
HRA exemption shall be the least of the following three amounts:
  • (a) Actual HRA received from employer during the relevant period
  • (b) Rent actually paid minus 10% of salary for the relevant period
  • (c) 50% of salary (Metro cities) or 40% of salary (Non-metro cities)

"Relevant Period" — The period during which the accommodation was actually occupied by the employee during the tax year.

"Salary" includes DA only if DA forms part of the terms of employment (counted for retirement benefits). Excludes HRA, bonus, commission, and all other allowances.

Form 124 (Rule 205) — Employees must submit evidence of HRA claims including landlord's name, address, PAN (mandatory if annual rent > ₹1,00,000), Aadhaar, and rent receipts to the employer for TDS computation under Section 392.
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What is HRA?
House Rent Allowance (HRA) is a component of salary paid by employers to help employees meet rental accommodation expenses. The qualifying portion reduces your total taxable income under the head “Salaries.”
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The 3-Condition Rule
Exemption = Least of:
  • Actual HRA received
  • Rent paid − 10% of salary
  • 50% salary (metro) / 40% salary (non-metro)
Always the lowest of the three qualifies.
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Metro vs Non-Metro Cities
50% of salary: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru.

40% of salary: All other cities and towns in India.
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What is “Salary” for HRA?
Salary = Basic Pay + DA (only if DA forms part of retirement/superannuation benefits).

Excluded: HRA, bonus, commission, overtime, and all other allowances & perquisites.
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Form 124 & Rule 205
Under Rule 205 of IT Rules 2026, employees submit Form 124 to their employer with:
  • Landlord name, address, PAN, Aadhaar
  • Rent amount and period
  • Relationship with landlord (if any)
PAN mandatory if rent exceeds ₹1,00,000 p.a.
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When HRA is Fully Taxable
HRA received is fully taxable if:
  • Employee lives in own house
  • No rent is actually paid
  • Rent paid is less than 10% of salary
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Employer-wise Entry — Why?
HRA is computed for each "relevant period" per employer. Enter details separately if:
  • You changed jobs — different salary & HRA structure
  • You changed city — metro/non-metro affects the 50%/40% limit
  • Salary was revised — mid-year increment changes all 3 conditions
  • Rent changed significantly — affects condition (b)
Total annual exemption = sum of all employer periods.

Metro Cities — 50% Salary Limit (Rule 279)

Sl. No.CityHRA City Limit
1Mumbai50% of Salary
2Delhi50% of Salary
3Kolkata50% of Salary
4Chennai50% of Salary
5Hyderabad50% of Salary
6Pune50% of Salary
7Ahmedabad50% of Salary
8Bengaluru50% of Salary
9All other cities / towns40% of Salary

Frequently Asked Questions

Yes — but only if the rented house and the house on which you pay home loan EMI are in different cities. If both are in the same city, the tax department may question the claim. Consult a CA for proper documentation.
As per Rule 279(2)(b), IT Rules 2026, DA is included in salary for HRA purposes only if DA forms part of the terms of employment (i.e., counted for retirement/superannuation benefits like PF, gratuity).

For most private sector employees, DA does not form part of retirement benefits — so only Basic Pay is used as salary for HRA calculation.
Under Rule 205, IT Rules 2026, submit Form 124 to your employer with:
  • Rent receipts (monthly)
  • Landlord's name and full address
  • Landlord's PAN — mandatory if annual rent exceeds ₹1,00,000
  • Landlord's Aadhaar number
  • Relationship with landlord (if any)
  • Rent agreement / lease deed
HRA is computed period-wise (relevant period) for each employer separately. Use the "Add Another Employer" button in this calculator to add each employer with their respective salary, HRA, rent, and city details. The annual exemption is the sum of all employer-wise exemptions.
Paying rent to parents or siblings is allowed if genuine — with a formal rent agreement, bank transfer proof, and the recipient must declare rent as their income in their ITR.

Paying rent to spouse is generally not accepted by tax authorities as genuine.
The new Income Tax Act 2025 (effective 01.04.2026) consolidates HRA under Schedule III [Table: Sl.No. 11] with Rule 279 of IT Rules 2026:
  • The 3-condition formula remains the same
  • Metro city list is now 8 cities — Hyderabad, Pune, Ahmedabad, Bengaluru added to original 4
  • Evidence submission rules are under Rule 205 via Form 124
  • Employer TDS obligation under Section 392 (previously Section 192)
No. HRA exemption is available only to salaried employees. Self-employed individuals cannot claim HRA exemption, but may claim rent paid as a business expense under certain conditions.
This tool generates a self-prepared working statement for personal use and to share with your CA. For official TDS computation or ITR filing, the figures must be verified by a qualified Chartered Accountant.

Contact CA Jatin Karda & Co. for expert assistance.
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Have questions about your HRA or salary taxation?
Get a personalised consultation with CA Jatin Karda & Co., Nagpur — for TDS on salary, Form 124 filing, ITR preparation, or any tax advisory.
Book a Consultation
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