Do I need my landlord’s PAN?

Employers usually ask for the landlord’s PAN when annual rent is above ₹1 lakh, along with rent receipts or a rent agreement.

Can I claim HRA if I pay rent to my parents?

Yes, if you genuinely pay rent, the parent owns the house and declares the rent as income. Pay by bank transfer and keep an agreement.

What if I don’t get HRA from my employer?

Salaried people without HRA cannot use this exemption. A separate deduction for rent paid exists for those who do not receive HRA, with its own limits.

HRA exemption calculator

Only part of your HRA is usually tax-free. Enter your monthly basic pay, HRA and rent to see the exempt amount for the year, which of the three limits applies to you, and how much of your HRA stays taxable.

By FinancePaisa Editorial Team · Research & editorialUpdated 28 September 2026

Basic salary + DA (per month)

₹

Only DA that counts for retirement benefits.

HRA received (per month)

₹

Rent you pay (per month)

₹

Where do you rent?

From tax year 2026-27, the 50% limit applies in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Months you paid rent this year

months

Tax-free HRA for the year₹2,04,000Taxable HRA: ₹36,000

The exemption is the lowest of these three:

HRA received₹2,40,000

50% of basic + DA₹3,00,000

Rent paid minus 10% of basic + DA₹2,04,000

HRA received₹2,40,000

Taxable HRA₹36,000

What this means

Your rent is what limits the exemption. Rent of about ₹25,000 a month would make all of your HRA tax-free (up to the 50% limit).

HRA exemption is available only under the old regime. Enter ₹2,04,000 as “Exempt HRA” in the old vs new regime calculator to see which regime wins.

The three limits

The exempt HRA is the lowest of: (a) the HRA you actually receive, (b) 50% of basic + DA if you rent in a metro, 40% elsewhere, (c) the rent you pay minus 10% of basic + DA. All three are worked out for the months you paid rent. Only DA that counts for retirement benefits is included with basic.

Worked example

Basic + DA ₹50,000 a month (₹6,00,000 a year), HRA ₹20,000 a month (₹2,40,000), rent ₹22,000 a month (₹2,64,000). (a) HRA received: ₹2,40,000 (b) 50% of basic: ₹3,00,000 in a metro, or 40%: ₹2,40,000 elsewhere (c) Rent minus 10% of basic: ₹2,64,000 − ₹60,000 = ₹2,04,000 The lowest is (c), so ₹2,04,000 is tax-free whether you live in a metro or not (₹2,04,000 in a non-metro city). The remaining ₹36,000 of HRA is taxed as salary.

Metro cities from tax year 2026-27

Delhi, Mumbai, Kolkata and Chennai, plus Bengaluru, Hyderabad, Pune and Ahmedabad, get the 50% limit from tax year 2026-27. For FY 2025-26 returns only the first four count. Other cities, including Gurugram and Noida, use 40%.

Old regime only

The HRA exemption is not available under the new tax regime. Take the exempt amount from this calculator into the old vs new regime calculator to see which regime leaves you better off.

Frequently asked questions

HRA exemption guide Old vs new tax regime calculator Old vs new regime: worked examples Income tax for salaried