HRA Calculator India 2026

Yes, you can claim HRA by paying rent to your parents. However, your parents must declare this rental income in their ITR. Ensure you have a proper rent agreement, pay rent via bank transfer, and obtain rent receipts. This is a legitimate tax-saving strategy as long as the rent is reasonable and actually paid.

For annual rent up to ₹1 lakh, rent receipts are generally sufficient. For rent exceeding ₹1 lakh per year, you need the landlord's PAN. Without receipts, you can provide bank statements showing rent transfers, rent agreement, and a self-declaration. HRA can be claimed directly on your ITR even if not claimed through employer.

No, HRA exemption under Section 10(13A) is NOT available in the New Tax Regime. If you choose the new regime, you cannot claim HRA exemption. This is one of the key deductions to consider when choosing between old and new tax regimes.

Yes, you can claim both if: (1) You own a house in one city and pay home loan EMI, (2) You live in a rented house in another city for work. You can claim HRA for the rented house and home loan interest (Section 24b up to ₹2 lakh) for the owned house. Both properties should be in different cities.

From FY 2026-27, 8 cities are classified as Metro: Delhi NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad. Employees in these cities get 50% of salary for HRA calculation vs 40% for non-metro cities.

If your HRA is more than rent paid, your exemption is limited to the least of the three conditions. The excess HRA becomes taxable. For example, if HRA is ₹3L but rent is only ₹1.8L annually, the difference will be taxed as per your slab.

Landlord's PAN is mandatory if annual rent exceeds ₹1 lakh (₹8,333/month). If landlord doesn't have PAN, they must provide a declaration with their name, address, and reason for not having PAN. Missing this can result in rejection of HRA claim.

Dearness Allowance (DA) forming part of retirement benefits is added to Basic Salary for HRA calculation. So 'Salary' in HRA formula = Basic + DA. If your company doesn't provide separate DA, enter 0 in the DA field.

No, you cannot claim HRA exemption if you live in your own house where you don't pay rent. HRA is specifically for employees who live in rented accommodation. If you don't pay rent, your entire HRA becomes taxable.

While rent agreement is recommended, HRA can be claimed with rent receipts and bank statements as proof. However, for rent above ₹20,000/month in many states, a registered rent agreement is legally required and may be asked during IT scrutiny.