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Yes. These in-browser tools are completely free to use with no account required for core functionality.

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Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.

Is the HRA Exemption Calculator tool safe to use?

Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.

Can I claim both HRA exemption and home loan interest deduction simultaneously?

Yes — this is possible when you own a property in one city but rent accommodation in another city where you work. Example: You own a flat in Pune (home loan running) but work and rent in Bengaluru. You can claim: (1) HRA exemption under Section 10(13A) for Bengaluru rent; (2) Home loan interest under Section 24b for Pune property (₹2L limit if self-occupied deemed as such, uncapped if deemed let-out). The two deductions arise from different properties and different sections, so they are simultaneously claimable. ITR filing requires declaration of both properties.

Is HRA exemption available under the new tax regime?

No — HRA exemption is not available under the new tax regime (Section 115BAC). The new regime offers lower slab rates but eliminates most exemptions and deductions including HRA, LTA, 80C, 80D, and Section 24b interest (up to ₹2L). For salaried employees, the decision between old and new regime depends on total deductions: if your combined deductions (HRA + 80C + 80D + 24b + NPS 80CCD) exceed approximately ₹3-4L annually, the old regime typically saves more tax. For those with low deductions or minimal HRA, the new regime with lower rates is better.

What documents are required to claim HRA exemption?

Documents required: (1) Rent receipts — ideally monthly, with revenue stamp if rent > ₹3,000/month; (2) Landlord PAN — mandatory if annual rent exceeds ₹1,00,000; (3) Rent agreement (registered or notarized, though not strictly mandatory for the exemption itself); (4) Bank statement showing rent payments (recommended for audit trail). Employer typically collects these in January-February for Form 16 computation. In ITR, HRA exemption is claimed in the exemption section — no separate form needed. CBDT circular does not require rent receipts to be submitted with ITR but they must be available if ITR is scrutinized.

What if my employer does not give HRA as a salary component?

If your CTC has no HRA component, you cannot claim Section 10(13A) exemption — it requires actual HRA received from employer. However, salaried employees who pay rent without HRA component can claim Section 80GG deduction (least of: ₹5,000/month = ₹60,000/year; or 25% of total income; or rent paid minus 10% of total income). Section 80GG has much lower benefit ceiling than HRA exemption and is only available if neither you, spouse, nor minor children own a residential property. For employees, the better solution is to request CTC restructuring to include HRA formally.

GST & Tax Tools

HRA Exemption Calculator

Calculate HRA tax exemption under old tax regime — metro and non-metro rules.

This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.

Run HRA Exemption Calculator online

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House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act is one of the largest tax-saving opportunities for salaried employees living in rented accommodation under the old tax regime. The exemption equals the minimum of three conditions: (1) Actual HRA received from employer; (2) Rent paid minus 10% of basic salary (this removes benefit for low-rent situations); (3) 50% of basic salary + dearness allowance for employees in metro cities (Delhi, Mumbai, Kolkata, Chennai), or 40% for non-metro employees.

Example calculation for a Mumbai employee: Basic salary ₹60,000/month, HRA received ₹24,000, actual rent paid ₹20,000. Condition 1: ₹24,000. Condition 2: ₹20,000 - 10% of ₹60,000 = ₹20,000 - ₹6,000 = ₹14,000. Condition 3: 50% of ₹60,000 = ₹30,000. Minimum = ₹14,000 — only ₹14,000/month is exempt, not the full ₹24,000 HRA received. Annual HRA exemption = ₹1,68,000. This saves ₹50,400/year in taxes at 30% slab.

Important nuances: HRA exemption is available only under the old tax regime — the new default regime (Section 115BAC) does not allow HRA exemption. Employees must pay rent to a landlord; self-occupied property owners cannot claim HRA even if HRA is part of their CTC. Rent paid to close relatives (parents, spouse) is allowed if rent is genuine and the relative declares it as income. Rent receipts with landlord's PAN are required if annual rent exceeds ₹1L. Employees in cities like Bengaluru, Hyderabad, Pune, and Ahmedabad are classified as non-metro (40% cap), despite high housing costs.

How to use this utility

Use the controls below—paste text, pick files, or adjust options as described on the tool.
Click the main action button. Processing runs in your browser on this device.
Download or copy the output. Check the processing note for any external services used by this operation.

Common use cases

Calculating exact HRA exemption for a Bengaluru IT employee with ₹50,000 basic, ₹20,000 HRA, and ₹15,000 monthly rent
Determining whether switching to old tax regime purely for HRA benefit is worthwhile given current rent level
Optimizing CTC restructuring to maximize HRA component for a high-earner in a metro city
Verifying rent receipt documentation requirements when annual rent paid is ₹1.5L to a parent
Comparing HRA exemption benefit vs standard deduction ₹75,000 under new regime to make tax regime decision

Tips for best results

1Pay rent to parents if they own the house — it is legally valid, reduces your tax via HRA exemption, and the rental income in parents' hands is taxed at lower rates or within their basic exemption
2Collect rent receipts monthly with revenue stamp if rent exceeds ₹3,000/month, and get landlord PAN if annual rent exceeds ₹1L
3If you pay rent but your CTC has no HRA component, you cannot claim HRA exemption — negotiate CTC restructuring at next appraisal to add HRA
4For self-employed professionals (not salaried), HRA exemption does not apply — claim Section 80GG deduction instead (₹5,000/month or 25% of income, whichever is lower)
5Metro classification (50% cap) applies only to Delhi, Mumbai, Kolkata, Chennai — Bengaluru, Hyderabad, Pune, Ahmedabad are non-metro at 40% cap despite being major cities

Frequently asked questions

Is Konnect2Tools free?: Yes. These in-browser tools are completely free to use with no account required for core functionality.
Do my files leave my device?: Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
Is the HRA Exemption Calculator tool safe to use?: Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
Can I claim both HRA exemption and home loan interest deduction simultaneously?: Yes — this is possible when you own a property in one city but rent accommodation in another city where you work. Example: You own a flat in Pune (home loan running) but work and rent in Bengaluru. You can claim: (1) HRA exemption under Section 10(13A) for Bengaluru rent; (2) Home loan interest under Section 24b for Pune property (₹2L limit if self-occupied deemed as such, uncapped if deemed let-out). The two deductions arise from different properties and different sections, so they are simultaneously claimable. ITR filing requires declaration of both properties.
Is HRA exemption available under the new tax regime?: No — HRA exemption is not available under the new tax regime (Section 115BAC). The new regime offers lower slab rates but eliminates most exemptions and deductions including HRA, LTA, 80C, 80D, and Section 24b interest (up to ₹2L). For salaried employees, the decision between old and new regime depends on total deductions: if your combined deductions (HRA + 80C + 80D + 24b + NPS 80CCD) exceed approximately ₹3-4L annually, the old regime typically saves more tax. For those with low deductions or minimal HRA, the new regime with lower rates is better.
What documents are required to claim HRA exemption?: Documents required: (1) Rent receipts — ideally monthly, with revenue stamp if rent > ₹3,000/month; (2) Landlord PAN — mandatory if annual rent exceeds ₹1,00,000; (3) Rent agreement (registered or notarized, though not strictly mandatory for the exemption itself); (4) Bank statement showing rent payments (recommended for audit trail). Employer typically collects these in January-February for Form 16 computation. In ITR, HRA exemption is claimed in the exemption section — no separate form needed. CBDT circular does not require rent receipts to be submitted with ITR but they must be available if ITR is scrutinized.
What if my employer does not give HRA as a salary component?: If your CTC has no HRA component, you cannot claim Section 10(13A) exemption — it requires actual HRA received from employer. However, salaried employees who pay rent without HRA component can claim Section 80GG deduction (least of: ₹5,000/month = ₹60,000/year; or 25% of total income; or rent paid minus 10% of total income). Section 80GG has much lower benefit ceiling than HRA exemption and is only available if neither you, spouse, nor minor children own a residential property. For employees, the better solution is to request CTC restructuring to include HRA formally.

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